The Australian Taxation Office has revealed the industries that have attracted the most tip-offs from the general public about shadow economy behaviour.
The ATO received 43,000 tips-offs in the 2021-22 financial year, with these industries put under the greatest spotlight:
- Building & construction
- Hairdressing & beauty services
- Cafés & restaurants
- Road freight transport
- Management advice & related consulting services
Common tip-offs included demanding that customers pay in cash, paying employees in cash or not declaring all sales.
The ATO estimates the community misses out on around $11 billion in taxes each year as a result of the shadow economy.
ATO assistant commissioner Peter Holt said tip-offs from the public help the ATO fight tax avoidance and protect honest businesses.
“The shadow economy is an economic and social issue that affects all of us. As businesses recover from the impacts of COVID and natural disasters, it is more important than ever to protect the vast majority of businesses who are honest and try to do the right thing,” he said.
“Every dollar of tax dodged is a dollar that can’t be used for vital services like health and aged care. We’ve all witnessed over the past couple of years how much the community relies on these critical services.”
According to the ATO, the tell-tale signs that a business may be operating in the shadow economy include:
- Displaying ‘cash only’ signs
- Offering discounts for paying in cash
- Refusing to accept card payments
- Refusing to provide payslips to workers
- Failing to ring up sales
- Running illegal software that deletes or modifies sales transactions
Tip-offs can be made online at ato.gov.au/TipOff, via the ATO app or by phoning 1800 060 062. All tip-offs are private and you can remain anonymous.