With the Whistleblower service launched by tax office on July 2019. The hotline helps the people can easily expose business owners that are suspected of operating black economy.
The focus would be more on the people that encourage cash payments by offering special discounts says, Deputy Commissioner Deborah Jenkins. It is, in fact, described as “rampant black economy activity.”
The new tax hotline service is, of course, an anonymous reporting service that encourages ‘know “something-say something culture’. Australian tax officers have signalled that they expect some vindictive reporting. The new hotline introduced is aimed at reducing the tax gap in the small-business and introduced changes to the Australian Business Number (ABN) system as an effort to eliminate dodgy cash-in-hand wages.
Prior to the introduction of the new hotline, the country has whistled 51,000 times on suspected tax dodgers in the financial year 2016-17. The figure reached near to 60000 in the financial year 2108, and it reached close to 70000 in the year 2019.
It is not necessary you should know the company’s information or the address in detail to report suspicious tax activity through hotline say, tax officers. People can ring to the tax office and say that the person next to him is suspected of having some explained wealth or a person is running the business out of their home.
As per the records, one-third of the reporting in the previous year includes people saying that the people they know are under-reporting their income. One in four cases among them were about cash economy, and eight per cent of them includes workers reporting unpaid superannuation from an employee. However, they are easy to track with the help of the single touch payroll that provides up to date reporting for all companies irrespective of their size from July 1.
Reporting on the tip-off service may not lead to the investigation, but, it can be linked with the other information in the file to trigger the audit. If you find any suspicious activity, you can call on toll-free 1800 060 062. Due to the amendment of privacy laws, tipsters will not be informed about the progress after you intimate them through a phone call.
Why are they called tax man?
· Suspecting under-reported income
· Running a cash economy
· Not filing tax
· Inadequate or no super
· Overstating expenses
Max Margin Accountants is a registered accounting firm based in Melbourne. We specialize in helping our clients with a full array of Business Advisory, Taxation and Accounting services. We help businesses all industries and sectors including: Automatic Mechanic, Hotel and Bar, Barber & Hair Dresser, Car Wash, Home Builder & Architecture, Cafe and Coffee Shop, Cleaner, Computer & IT Industry, Family Day Care, Gym and Personal Trainer, Small Businesses, Medical Practitioner, NDIS Business, eCommerce, Property Investors, Tradies and Taxi Drivers.
Last Updated on September 6, 2023
