Australian business owners have been warned to expect greater scrutiny after the Australian Taxation Office conducted an unannounced compliance operation at 25 fast-food outlets, restaurants and cafes.
The venues, located in Melbourne’s CBD, were visited on September 22 and 23 as the ATO examined potential tax evasion, unpaid superannuation and underreported income.
Data obtained by news.com.au shows the ATO received more than 52,000 tip-offs nationwide during the last financial year—equivalent to about 1,000 leads a week. More than 2,500 reports concerned the hospitality industry.
ATO assistant commissioner Tony Goding said information supplied by the public was crucial in identifying businesses that may not be complying with their obligations.
“Much of our most valuable intelligence comes directly from community tip-offs,” he said.
“Often, it’s a worker, customer or competitor who recognises something that doesn’t seem right.”
Mr Goding said businesses could draw attention if their declared income appeared inconsistent with how busy they seemed to be.
“Melbourne diners know a busy cafe when they see one, so do we,” he said.
The Australian Taxation Office (ATO) has conducted a compliance operation at more than 25 Melbourne fast-food outlets, restaurants and cafes
“When a venue is packed, staff are flat out and the coffee machine never stops, but the books tell a different story, that’s something we’re going to take a closer look at.”
The Melbourne operation is part of the ATO’s wider Shadow Economy Taskforce, which also visited farms in Griffith, NSW, in July and vineyards throughout South Australia’s Barossa Valley, Adelaide Hills and McLaren Vale regions in April.
The agency said more than 350 individuals and entities had been caught over the past several years, leading to fines totalling more than $2.7 million.
Beyond hospitality, the ATO said many tip-offs involved businesses in the building and construction, hairdressing and beauty sectors.
Most reports alleged undeclared income, cash-in-hand payments or lifestyles that appeared inconsistent with the earnings businesses or individuals reported.
Mr Goding said people who deliberately failed to meet their tax and superannuation obligations would eventually face detection.
“Tax crime leaves telltale signs, and the community is getting better at spotting them and less tolerant of people getting away with these activities,” he said.
“The message is simple: if you’re deliberately avoiding your tax or super obligations, there’s a good chance someone will notice.
Hospitality venues across Melbourne’s CBD were visited on September 22 and 23 amid concerns about suspected tax evasion, unpaid superannuation and underreported income
Data obtained by news.com.au shows the ATO received more than 52,000 tip-offs during the last financial year, including more than 2,500 reports about the hospitality industry
“Whether it’s an employee, customer, supplier, former partner, competitor or member of the public, there are eyes everywhere.”
– READ MORE: ATO puts Australians on notice over commonly abused tax deduction: ‘We’re watching more closely than ever’
