The ATO announced it plans to visit some 500 businesses in the NSW mid-north coast area as part of its ongoing efforts to address tax compliance issues.
The ATO said it hopes to help protect honest businesses by addressing the black economy. On their website, ATO defines black economy activities as those that are dishonest and criminal in nature, and involve the misuse or abuse of tax and regulatory systems.
ATO assistant commissioner Peter Holt said that “there are a number of businesses” in the NSW region with “overdue income tax returns,” and that could be a sign of the black economy.
Mr. Holt said they will be talking to business owners to find out any issues they may have.
He said, “We may discuss record-keeping and payment facilities, outstanding lodgements, tax debts, and managing employee entitlements such as superannuation.”
Businesses in the said area are also encouraged to register for an information session on July 29, 2019, on Rydges Port Macquarie, where ATO officers will discuss the Single Touch Payroll system and the extension of the taxable payments reporting system.
The Black Economy Taskforce estimates the black economy is setting the community back by as much as $50 billion, or 3 per cent of gross domestic product (GDP).
The money could be better used for “vital public services like schools, welfare, roads, healthcare, and infrastructure,” Mr. Holt said.
“Most businesses do the right thing. However, businesses who deliberately do the wrong thing — for example, pay cash in hand or fail to lodge income tax returns or business activity statements — get an unfair advantage and make it harder for businesses who are doing the right thing. By detecting and addressing this behaviour, we’re helping to ensure a level playing field for honest small businesses.”
The ATO office assures any tax compliance issues by businesses in the area will be further investigated.
So for those honest-to-goodness businesses in the NSW, the ATO has your back.
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