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  • Cash economy


    The cash economy exists where businesses deliberately use cash transactions to hide income to avoid paying tax. In 2012–13, we issued over 67,000 letters, assisted over 3,500 businesses with their record-keeping issues and conducted over 13,200 compliance activities including audits and reviews, resulting in $193.8 million in liabilities raised.

    COSBOA stated, in its response to the Productivity Commission's Study into regulator engagement with small business (March 2013):

    Another example of the ATO's professional approach to compliance management is their method of dealing with the cash economy … they have analysed the information they gather and they have then targeted individual industry sectors where problems appear to be of concern. They … together work out a strategy to get the information to the industry.
      Last modified: 02 Mar 2015QC 42698