How to Avoid the Black Economy & Why the ATO is Supporting Small Business

Small Biz Matters – a half hour program each week where you can work ON your business rather than IN it.
with Alexi Boyd from Boyd Office Management Services
Date: 27 November 2018

I was proud in October to represent Small Biz Matters at the ATO's Protecting Honest Businesses seminar at Haymarket where I interviewed Braden Powell, Director of Small Business Assurance. He explained the importance of understanding the Black Economy and how to avoid it.

Welcome to the show Braden.

As the ATO states:

Most people and businesses are honest and compete fairly.

There are however, some that deliberately hide income to avoid paying the right amount of tax or superannuation. One of the ways they do this is by not recording or reporting all their cash income or electronic transactions.

This is what we call the cash and hidden economy and it’s not fair.

Those who participate in the cash and hidden economy are disadvantaging the community, honest taxpayers and honest businesses by not competing fairly.

Over 85% of Australians believe it's unfair to use cash to avoid paying their fair share of tax.

The interview Q’s:

• What is the purpose of these business visits the ATO is running across Australia?
• What is the Black Economy & how does it impact business and the wider economy?
• Why is the ATO visiting these locations?
  • Why these areas specifically around the country?
  • Both cities and country are being targeted
• What have you found in your previous visits?
• What should small business owners expect during a visit?
  • How will they take place and what can businesses expect when the ATO comes knocking?
  • Are they different from an audit?
• What resources are available for small businesses and where can people find more information if they would like it?

To find out more go to their website: https://www.ato.gov.au/general/gen/the-cash-and-hidden-economy/

www.ato.gov.au/protectinghonestbusiness