Compliance program 2011-12

Cash economy

Some businesses participating in the cash economy are not paying their fair share of tax. They continue to undermine Australia's taxation and superannuation systems. These businesses are becoming more visible to us as a result of increased and more sophisticated data-matching activities.

We are likely to detect businesses with inadequate records, or those failing to record all sale transactions, paying cash-in-hand wages or operating outside the system. Last year we continued to see poor record-keeping practices by some small business owners. Specifically, some businesses did not record all sales transactions, thereby leading to a higher risk of not reporting all cash income and their GST on sales.

A clear link exists between compliance with tax obligations and good record-keeping practices. Record keeping therefore continues to be an important focus of our compliance and help and education strategies. We will continue to visit businesses and work with tax practitioners and industry and professional associations to identify and share best practice in record keeping.

We will pay particular attention to the:

• plastering and
• coffee shop industries.

We will work closely with these industries and their associations to ensure we provide the assistance people in these industries need to help them meet their obligations. We will review the tax affairs of businesses that appear to be doing the wrong thing. Administrative penalties and prosecutions may result from these reviews.

Sections within Micro enterprises

• Employer obligations
• Contractors
• Information matching
• Government payments
• Internet trading
• Reconstruction activity
• Cash economy
• Small business benchmarks
• Investments
• Self-managed superannuation funds
• Business activity statements
• Wine equalisation tax producer rebate
• Excise equivalent goods
• Managing tax debt