New cash and hidden economy review and audits guide

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Are you?
  • A business owner?
At a glance:
  • The Tax Office has collaborated with tax practitioners and small businesses to develop a new ‘Cash and hidden economy review and audits guide’.
You should: 
  • Use the guide to assist your business in cash economy reviews or audits.
  • Contact us if you require any clarification or advice.
  1. The cash economy (also known as the black, hidden or underground economy) is where a business deliberately hides income to avoid paying tax.
  2. The Tax Office uses a variety of risk factors to identify potential businesses that are suspected of engaging in the cash economy. Businesses that have been isolated will undergo a review or audit process.
  3. To assist businesses with the review or audit process, the Tax Office has released a new ‘Cash and hidden economy review and audits guide’ that will let businesses know what to expect if involved in a review or audit.
  4. The guide was created in collaboration with tax practitioners and small businesses in order to provide a very comprehensive but valuable, easy to read information source. It details the review and audit process and other expectations such as the types of documentation that may be required as evidence.
  5. Types of cash economy activities include:
    • Paying wages by way of cash-in-hand;
    • Skimming some or all of the cash takings; and
    • Running a part of normal business activities off the books.
  6. To access the guide, click here.
Remember:
  • Engaging in cash economy activities is deemed to be tax avoidance.
This article was published on 20/01/2014 and is current as at that date

This article is not a substitute for independent professional advice. We do not warrant the accuracy, completeness or adequacy of the information or material in this article. All information is subject to change without notice. We and each party providing material displayed in this article disclaim liability to all persons or organisations in relation to any action(s) taken on the basis of currency or accuracy of the information or material, or any loss or damage suffered in connection with that information or material. You should make your own enquiries before entering into any transaction on the basis of the information or material in this article. Please ensure you contact us to discuss your particular circumstances and how the information provided applies to your situation.

 

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