Etairos Accounting and Finance
we guide you to a better future
Etairos Accounting and Finance
Strength in Numbers
Interested to know how an SMSF
can work for your future?
Are you looking for something better from your
Accounting and Finance experience?

Tax Man comes knocking

Added on by


The ATO has revealed it will continue a crackdown on businesses that rely on cash payments, noting that $143 million in tax and penalties were collected last year from firms mishandling cash accounts. In a note to tax professionals, the ATO revealed that it "will begin more … visits around the country soon” as part of its Protecting Honest Business campaign.

"While we know not every business is doing the wrong thing, we found over 60 per cent of the businesses we visited so far need to take some kind of corrective action,” it said."There are businesses that operate in the cash and hidden economy, gaining an unfair advantage over those who declare their income and do the right thing. We aim to protect honest business from this unfair competition.”

Elaborating on the statement, assistant commissioner Matthew Bambrick said that more than 2,600 businesses were targeted during 2017, with follow ups on those still ongoing. During the last 12 months, eight regions across Australia were targeted: Perth CBD, Canberra, Cabramatta (NSW), Werribee (VIC), Sunnybank (QLD), Liverpool (NSW), Glen Waverley (VIC) and Glenelg (SA).

"Anecdotally, during these visits we have noticed that many businesses have a lack of record-keeping education and knowledge of appropriate processes,” Mr Bambrick said."Some businesses admitted to not recording all sales and just averaging or estimating sales information; many business owners sought recommendations for electronic payment facilities and showed significant interest in online tools and services; and a small number of businesses were identified without current ABN and GST registrations.”

As many as 60 per cent of businesses investigated have been found to have effectively hidden profits from the ATO, which Mr Bambrick suggested has resulted in a substantial underpayment of taxes. "In the first six months of 2017-2018, we have conducted 5,020 reviews and audits resulting in approximately $143 million in tax and penalties,” he said.

(Source: MyBusiness 31 January 2018) 

Latest from the blog

Home loans for self-employed 01 August 2018

As a self employed borrower, the Structure you present to a potential lender can vary greatly from a simple sole trader to complex groups involving... READ MORE

A guide to borrowing to build your new home 11 June 2018

Building a brand-new home has long been a dream for many of us. To make that dream become a reality however, most of us will... READ MORE

Budget 2018 09 May 2018

  The Federal Treasurer, Mr Scott Morrison, handed down his third  Budget last night - 8 May 2018. Mr Morrison said the Budget is... READ MORE

“Jaeneen from Etairos Finance recently provided me with outstanding results for refinancing my mortgage. She worked so well to inform me of all the necessary requirements I needed to supply. I am so overwhelmed by her dedication and professionalism. She brings her consistent cheerful nature to every correspondence. She is a godsend. In fact all the team at Etairos was great. They managed to secure a fantastic refinance outcome for me and as a single mother of 3 this is truly the best news.” more testimonials

Anna Magnus, The Gap, Brisbane

Call  1300 55 22 30  now