The cash economy for small business

The Australian Taxation Office (ATO) has begun a crackdown on the cash economy.

The Government’s principle revenue collection agency has started visiting businesses in many areas where there are high cash transactions, and where businesses are not using credit cards or electronic funds transfer at point of sale (eftpos).

Takeaway and cafes are especially on their hit list.

If the ATO is unsatisfied that accurate records are kept based on till tapes, they may adjust business activity statements (BAS) and tax records accordingly.

This is in addition to the current practice in the construction industry where people are required to record payments along with ABN's to the ATO so they can be matched with income on tax returns.

This represents a hard stance of the ATO position on cash.

At TaxAssist Accountants, we advise clients account for cash in the proper manner to avoid audits which can drag on for years.

For further assistance, please contact one of our TaxAssist Accountants’ branches in Nerang, Burleigh, Woolgoolga, Coffs Harbour, Taree, Forster, Chatswood, Sydney CBD, Liverpool and soon to be Melbourne CBD and Perth CBD.

Date published 7 Feb 2018

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.