ATO Keen on Enforcing Aggressive Tax Evasion Measures against Cafe Operators

The Australian Tax Office (ATO) has issued a warning directed at operators of cafe and coffee houses in Australia in relation to their reports of income.

Releasing its compliance program early today, the ATO is seemingly sending word that coffee sales will be properly monitored and its purchasing records scrutinized.

According to the ATO, they are doing this to help improve the industry. For bigger companies with overseas operations, however, pricing across the board is one of the main contentions.

The ATO intends to crack down on ‘plasterers,’ which the public has been complaining about. Amidst all these, the ATO said that they only want to stress good record keeping of businesses.

Meanwhile, the ATO is also looking into the issue of unpaid superannuation benefits, especially since the new anti-phoenixing laws have been set in place last July 1.

This means that if found guilty, the ATO can go after company directors’ and their personal assets.

According to Bruce Quiglye, it was easy for a company to set up a business, walk away with owed debts from the Tax Office and other people, and then start all over again.

Quiglye added that when one looks behind the corporate veil, one can have access to the assets that they have individually in their own right and this should help.

About 70,000 Australians with declared wealth between $5 to $30 million may be subjected for audit, or roughly 2600 companies and business. The ATO will operate with the help of other federal agencies to look into records of land transfers and other luxury property ownerships.

One tax counsel said, this move is an attempt to continue with Project Wickenby, which looks into offshore funds and tax evasion issues.