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Australia’s biggest tax cheats revealed, along with sneaky tricks

Carly Douglas NCA NewsWire
Commander of Investigations à Eastern Command Kirsty Schofield was part of a joint-agency investigation into an elaborate tax fraud resulted in charges against 12 people across the east coast of Australia in 2021. Richard Dobson
Camera IconCommander of Investigations à Eastern Command Kirsty Schofield was part of a joint-agency investigation into an elaborate tax fraud resulted in charges against 12 people across the east coast of Australia in 2021. Richard Dobson Credit: The Courier-Mail

Thousands of Aussies have been dobbed in for dodgy tax-related behaviour with those in the building and construction sector topping the list.

Aussies across the country made a total of 43,000 tip-offs to the Australian Taxation Office (ATO) in the 2021-22 financial year, with businesses, customers, employees and members of the public picking up the phone to report alleged offenders.

Hairdressing and beauty services came in second on the list, followed by cafes and restaurants, road freight transport, and management advice and related consulting services.

Over 13,400 calls were made to the ATO in the state, followed closely by Victoria, 11,500, and Queensland, 9,200.

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While Sydneysiders were the main culprits, Aussies in regional locations were also exposing their local alleged crooks.

The Sunshine Coast Hinterland and Cairns in Queensland, Wellington in Sydney and Wodonga and the Mornington Peninsula in Victoria made the top five regional locations for tip offs – almost 7,000 calls coming from people outside of major cities.

ATO Assistant Commissioner Peter Holt warns tax evaders as thousands of Australians tip-off dodgy businesses. Steve Tanner
Camera IconATO Assistant Commissioner Peter Holt warns tax evaders as thousands of Australians tip-off dodgy businesses. Steve Tanner Credit: Supplied

Examples of dodgy dealings included businesses demanding cash from customers or offering a discount for cash, paying workers ‘cash in hand’, not declaring all sales, failing to provide pay slips to workers, or even running illegal software that modifies sales transactions.

The ATO is currently using intelligence from tip-offs to address the ‘shadow economy’, which is estimated to be scrapping $11 billion off the top of our taxes each year.

ATO Assistant Commissioner Peter Holt said while the last few years have been tough for businesses, it does not excuse this kind of behaviour.

“The shadow economy is an economic and social issue that affects all of us,” Mr Holt said.

“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.”

Mr Holt said the fraudulent behaviour had put greater pressure on community services.

“Every dollar of tax dodged is a dollar that can’t be used for vital services like health and aged care,” he said.

“We’ve all witnessed over the past couple of years how much the community relies on these critical services.”

Commander of Investigations à Eastern Command Kirsty Schofield was part of a joint-agency investigation into an elaborate tax fraud resulted in charges against 12 people across the east coast of Australia in 2021. Richard Dobson
Camera IconCommander of Investigations à Eastern Command Kirsty Schofield was part of a joint-agency investigation into an elaborate tax fraud resulted in charges against 12 people across the east coast of Australia in 2021. Richard Dobson Credit: The Courier-Mail

The assistant commissioner, however, said it was not only businesses the ATO was investigating.

“We know that many customers also demand to pay in cash and ask for discounts to avoid paying tax, and we also know that many workers are demanding cash especially where there is a shortage of labour,” he said.

“Our message is – regardless of which party is driving the behaviour – it’s illegal and we’re on to it.”

More than ninety per cent of tip-offs received were deemed worthy of further investigation or were retained for intelligence purposes, Mr Holt reported, adding that assistance from the community to identify crooks was “valuable intelligence”.

“Sometimes that tip-off can be the final piece of the puzzle we need to act,” he said.

While tax expert confirmed that digital payments have increased in popularity through COVID-19, he said the shadow economy had not stalled.

“Just because digital payments have increased in popularity, this doesn’t mean that the shadow or cash economy has disappeared, it’s still there, and we’re determined to shine a light on it,” he said.

“It’s all about keeping the playing field as level as possible.”

The ATO confirmed it has also received a number of tip-offs as part of Operation Protego, which is investigating significant fraud involving participants inventing fake businesses to claim false refunds.

Tip-offs, which can be made anonymously, can also be submitted online at ato.gov.au/TipOff, via the ATO app, or by phoning 1800 060 062.

Originally published as Australia’s biggest tax cheats revealed, along with sneaky tricks

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