How we deal with cash and hidden income
Businesses that hide income (using cash and electronic payments) to avoid paying the right amount of tax or super or deliberately avoid their obligations by failing to register, keep records or lodge accurately (GST or income tax), are breaking the law and are participating in what we call the cash and hidden economy.
Hidden income and tax evasion more broadly is a problem, not just for business, but for the Australian community as it:
- provides an unfair advantage to dishonest businesses and individuals
- reduces the money we have available to provide public services.
There are a range of tools we use to identify businesses that are not reporting all their income. Penalties for engaging in fraudulent and evasive cash and hidden economy activities can include fines and imprisonment.
David Koch interviews Senior Assistant Commissioner Michael Hardy about the cash and hidden economy on Kochie's Business Builders webcast.
Highlights of Senior Assistant Commissioner Michael Hardy discussing the cash and hidden economy with David Koch on Kochie's Business Builders webcast.
This video lasts 4 minutes 38 seconds. Select the play button on the image to view; alternatively, read the transcript.
End of watch
Businesses that hide income to deliberately avoid paying the right amount of tax and super are breaking the law and participating in the cash and hidden economy.