• How we deal with cash and hidden income

    Businesses are breaking the law if they are participating in what we call the ‘cash and hidden economy’. This can include:

    • hiding income (cash and electronic) and paying cash wages to avoid paying the right amount of tax or super
    • deliberately avoiding their obligations by failing to keep records, register for GST or lodge accurately (GST and income tax).

    This type of tax evasion is a problem, not just for business, but for the Australian community. This is because it:

    • provides an unfair advantage to dishonest businesses and individuals
    • makes it unfair for workers who are not paid super or covered by insurance if they have an accident at work
    • reduces the money we have available to provide public services.

    We use a range of tools to identify businesses that aren't reporting all their income. Penalties for engaging in fraudulent and evasive cash and hidden economy activities can include fines and imprisonment.

    Watch

    David Koch interviews Senior Assistant Commissioner Michael Hardy about the cash and hidden economy 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.

    See also:

    Last modified: 06 Feb 2017QC 47206