The ATO put together The Black Economy Taskforce (BET) in 2016 to research and audit Australian small businesses who purposefully didn’t meet their tax and employee obligations, with the rise of businesses across Australia not meeting their tax obligations. This taskforce is known as the Black Economy.
The small businesses and people who operate outside of the tax and regulatory system and who do not report their obligations truthfully or accurately, involving both legal and illegal activities. For such businesses, ATO uses the term Black Economy.
According to the Black Economy Taskforce, there is a deficit of $50 Billion in unpaid tax obligations, GST, Pay-As-You-Go (PAYG) and superannuation. It has been determined that this area of the economy is set to grow.
The Black Economy severely affects community services provided by the government, such as:
- health – including Medicare and hospitals
- education – including schools and teachers
- transport and infrastructure – including airports, roads and railways
- community services – for example, when natural disasters occur.
Black Economy includes the following
The Black Economy involves the whole of the Australian working landscape, including employee entitlements and is not just focussed on tax issues. The Taskforce will be focussed on those small businesses and individuals that:
- demand or pay cash to avoid obligations
- do not report or under-report their and employees income
- underpay wages
- bypass visa restrictions and visa fraud
- present as a contractor instead of an employee
- liquidate and re-form businesses known as phoenix
- launder money
- gamble unregulated
- sell counterfeit goods.
The Tax Integrity Centre
The ATO has revealed that they have received 15,000 tip-offs to its Tax Integrity Centre in the first quarter of this financial year. If a taxpayer suspects an individual or business of not paying their obligations and entitlements, they can be reported to the Tax Integrity Centre. If this is too daunting, your tax agent will report this crime for you.
Getting it right
There is no excuse for not knowing your obligations, however, if you’re not sure, your tax agent will be able to help. Not only will they understand what tax you’ll need to pay, but they’ll also help with your deductions to minimise your tax.
KPG Taxation Income Tax Professionals offer bookkeeping services will ensure that you’re correctly paying your Goods and Services Tax (GST), lodge your Business Activity Statements (BAS), your Pay-As-You-Go (PAYG) and superannuation for your employees. Not only will you be up to date with ATO and avoid their radar, you’ll be able to track your business health and grow your business.
For detailed info, visit our office on this address: Suite 4, 13-15 Fenwick Street, Geelong VIC 3220, Australia