October 14th 2024.
Over the past five years, the Australian Taxation Office has been inundated with a staggering quarter of a million reports from concerned citizens. That's almost 1000 tips per week, which speaks to the growing frustration felt by the public towards those who are avoiding their tax obligations. As the ATO's assistant commissioner Tony Golding notes, this is a clear indication that people are fed up with individuals and businesses cheating the system and taking away funds that are crucial for essential community services.
Every month, the ATO receives an average of 3500 tip-offs, as people come forward with information about potential tax evasion or shadow economy activities. This not only includes reports from individuals, but also from businesses, customers, and even family and friends. It's clear that the community, including honest businesses, have had enough of those who are gaining an unfair advantage by not paying their taxes. In fact, the ATO estimates that around $16 billion is lost each year due to stolen, unpaid taxes.
According to Golding, 90% of these tip-offs lead to further investigation, highlighting the effectiveness of the ATO's efforts in cracking down on tax avoidance. As he puts it, dodging tax obligations is no longer acceptable and is no longer passing the "pub test." While the rise in digital payments has made it harder for dodgy businesses to cheat the system, it has also opened up new avenues for tax avoidance. This includes the use of illegal point-of-sale electronic sales suppression tools, which manipulate transactions and falsify records to reduce the amount of tax owed.
Some examples of these tools include re-sequencing transactions, deleting them permanently, or even misrepresenting the items being sold. For instance, someone may order an expensive meal and wine, but the ESS tool will record it as a cheap item like chips and a soft drink. This not only deceives the ATO, but also gives the business an unfair advantage over their competitors. Construction, restaurants, and hairdressing and beauty services were among the top industries reported to the ATO last financial year, with NSW being the state with the highest number of tip-offs.
Overall, it's clear that the community is taking a stand against tax evasion and is no longer willing to turn a blind eye to those who are cheating the system. With the ATO's continued efforts and the support of honest businesses and individuals, we can work towards a fair and equitable tax system for all.
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