We're aware some businesses try to avoid their tax obligations by asking for cash payments or offering discounts for cash and not recording the sale. But did you know that some businesses may be ringing up the sale and then removing it from their records.
Electronic sales suppression tools (ESSTs) are used to manipulate sales records so a business can under-report its income and avoid paying the right amount of tax.
ESSTs come in a variety of forms, including:
- an external device connected to a point of sale (POS) system
- software installed into a POS system
- a feature or modification built into a POS system
- a service provided by a third party.
Producing, supplying, using or even just possessing an ESST is illegal and harsh penalties can apply.
We're committed to tackling ESSTs. We recently conducted a series of raids across Australia with the support of the Australian Federal Police as part of a coordinated global crackdown on businesses suspected of supplying and using ESSTs.
Most businesses work hard to meet their tax obligations. Businesses that use an ESST make things unfair for those doing the right thing. Our website can help you work out if your POS is affected.
If you’ve had any involvement with an ESST, let us know at ESST@ato.gov.au and we’ll help you set the record straight.
Electronic sales suppression tools make things unfair for businesses doing the right thing.