The ATO is planning a compliance blitz targeting around 10,000 small businesses in Victoria, Queensland and the Northern Territory in the 2019-20 financial year and up to 1,800 businesses can expect a visit before the end of the 2018-19 financial year.
The ATO have identified these areas as being high risk. Assistant Commissioner Peter Holt said “We’re particularly concerned about businesses in these locations who are not registered for pay as you go (PAYG) withholding or GST” and he hopes the visits provide “an opportunity to talk to business owners and help them get things right.” Other areas of his concern were “misrepresenting sales, not reporting income from online transactions and poor record keeping.” He went on to say that “businesses who pay cash in hand, or fail to lodge income tax returns or business activity statements, get an unfair advantage and make it harder for other businesses who are doing the right thing. By detecting and addressing this behaviour, we’re helping to ensure a level playing field for honest small businesses in the NT.”
As part of its early intervention strategy, the ATO will also be paying visits to tax practitioners of small businesses in order to provide education and support.