• 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 as it:

    • provides an unfair advantage to dishonest businesses and individuals
    • makes it unfair for workers who are not paid super or covered 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 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.

     

    Duration 4:39. A transcript of The cash and hidden economy is also available.

    See also:

    Last modified: 03 Mar 2017QC 47206