Australian business owners are being warned after the Australian Taxation Office carried out an unannounced compliance operation at 25 fast-food outlets, restaurants and cafes.
The venues, located in Melbourne’s CBD, were visited on September 22 and 23 as the ATO examined suspected tax evasion, unpaid superannuation and income that may have been underreported.
Data obtained by news.com.au shows the ATO received more than 52,000 tip-offs across Australia during the last financial year—around 1,000 leads each week. More than 2,500 concerned the hospitality sector.
ATO assistant commissioner Tony Goding said information supplied by the public was crucial to identifying businesses that were not complying with their obligations.
“Much of our most valuable intelligence comes directly from community tip-offs,” he said.
“Often, it’s a worker, customer or competitor who recognises something that doesn’t seem right.”
Mr Goding said businesses could come under scrutiny when their declared income appeared inconsistent with the level of activity at their premises.
“Melbourne diners know a busy cafe when they see one, so do we,” he said.
The Australian Taxation Office (ATO) has inspected more than 25 Melbourne fast-food outlets, restaurants and cafes as part of its latest compliance operation.
“When a venue is packed, staff are flat out and the coffee machine never stops, but the books tell a different story, that’s something we’re going to take a closer look at.”
The Melbourne operation is part of the ATO’s wider Shadow Economy Taskforce, which also visited farms in Griffith, NSW, in July and vineyards throughout South Australia’s Barossa Valley, Adelaide Hills and McLaren Vale in April.
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The agency said its work over the past couple of years had identified more than 350 individuals and entities, leading to fines totalling more than $2.7 million.
Beyond hospitality, the ATO said a significant number of tip-offs involved the building and construction sector, as well as hairdressing and beauty businesses.
The allegations most commonly involved undeclared income, cash-in-hand payments and lifestyles that appeared out of step with the earnings reported to authorities.
Mr Goding said people who intentionally avoided paying tax or meeting their superannuation responsibilities would ultimately be detected.
“Tax crime leaves telltale signs, and the community is getting better at spotting them, and less tolerant of people getting away with these activities,” he said.
“The message is simple: if you’re deliberately avoiding your tax or super obligations, there’s a good chance someone will notice.
The hospitality venues in Melbourne’s CBD were visited on September 22 and 23 amid concerns about suspected tax evasion, unpaid superannuation and underreported income.
According to data obtained by news.com.au, the ATO received more than 52,000 tip-offs during the last financial year, including more than 2,500 relating to hospitality businesses.
“Whether it’s an employee, customer, supplier, former partner, competitor or member of the public, there are eyes everywhere.”
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