CASH TRANSACTIONS – AUSTRALIA

Doubts over crackdown on black economy

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Original article by Tom McIlroy
The Australian Financial Review – Page: 12 : 16-Aug-18

Keith Swan of KPMG has questioned whether a Federal Government initiative will be effective in combatting the black economy. From mid-2019, companies that tender for federal contracts worth more than $4m will have to provide a statement of tax record from the Australian Taxation Office. Swan says that amongst other things, this requirement could potentially bar companies from tendering if they have had tax disputes with the ATO in the past. He adds that newly-formed companies with no tax history may have a competitive advantage over established rivals.

CORPORATES
KPMG AUSTRALIA PTY LTD, AUSTRALIAN TAXATION OFFICE, THOMSON REUTERS PLC

Cash ban lacks hard evidence: ACCI

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Original article by Joanna Mather
The Australian Financial Review – Page: 9 : 5-Jul-18

The Australian Chamber of Commerce & Industry has questioned whether the Federal Government’s proposal to limit cash payments to $10,000 will be effective in combating the cash economy. The ACCI has warned that the ban, which was announced in the May 2018 Budget and is based on the recommendations of the black economy taskforce, could potentially undermine the integrity of the financial system. Australian Bankers’ Association CEO Anna Bligh has called for a sufficient transition period for bank customers to adapt to the proposed policy.

CORPORATES
AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY, AUSTRALIAN BANKERS’ ASSOCIATION, AUSTRALIA. DEPT OF FINANCE, KPMG AUSTRALIA PTY LTD

Australians are real stars at cheating – Ball-tampering is merely the tip of the iceberg

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Original article by Janet Albrechtsen
The Australian – Page: 12 : 4-Apr-18

Factors such as the extent of "liar loans" revealed by the banking royal commission, the black economy, and rampant insurance fraud and theft from shops suggest that Australia is a nation of cheats. The forgone tax revenue from the $A25bn-a-year black economy, for example, is much greater than tax evasion by large companies. For many people in a nation founded by petty criminals, the real crime arising from cricket’s ball-tampering scandal may be not the plot itself but the fact that Smith, Warner and Bancroft did it live on international television.

CORPORATES
AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, UBS HOLDINGS PTY LTD, AUSTRALIAN TAXATION OFFICE, BUNNINGS GROUP LIMITED

Hit black economy and raise billions

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Original article by Adam Creighton
The Australian – Page: 21 : 20-Mar-18

A report from KPMG concludes that targeting the black economy could generate revenue of at least $A5.8bn for the Federal Government. This includes an extra $A2.5bn in business taxes and an additional $A1.2bn in goods and services tax revenue. KPMG’s recommendations include banning income tax deductions for wages paid in cash and prohibiting cash transactions of more than $A100,000. The Government’s May 2018 Budget is expected to include its response to the final report of a black economy taskforce.

CORPORATES
KPMG AUSTRALIA PTY LTD, AUSTRALIAN TAXATION OFFICE, AUSTRALIAN LABOR PARTY, RESERVE BANK OF AUSTRALIA

Cash-only hot spots in sights of ATO

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Original article by Nick Tabakoff
The Australian – Page: 1 & 2 : 4-Dec-17

The Australian Taxation Office is currently targeting areas of the nation that have a lot of cash-only businesses. Such areas include Glenelg in South Australia and Sunnybank in Brisbane, with businesses being investigated including hairdressers and beauty parlours. The areas in question often have high immigrant numbers, and ATO Commissioner Chris Jordan, says Chatswood in Sydney could be one area for future targeting. The ATO’s crackdown on the cash economy has already netted it $A200 million in unpaid tax.

CORPORATES
AUSTRALIAN TAXATION OFFICE

King cash dethroned as cards lead a revolution at the till

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Original article by Richard Gluyas
The Australian – Page: 23 : 15-Sep-17

The ­Reserve Bank of Australia’s latest triennial customer payments survey highlights the continuing decline in the use of cash as a payment option, in favour of debit and credit cards. The proportion of consumer transactions that were carried out with cash has fallen from 70 per cent in 2007 to just 37 per cent in fiscal 2016. However, cash remains the most popular payment option for transactions costing less than $A10, while cash is still widely used by older people. There was also a 20 per cent decline in payments via cheque in 2016-17.

CORPORATES
RESERVE BANK OF AUSTRALIA

Taskforce seeks tobacco blitz

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Original article by Duncan Hughes
The Australian Financial Review – Page: 7 : 7-Aug-17

The Black Economy Taskforce’s chairman Michael Andrew says he plans to urge the Australian Government to clamp down on the illegal tobacco industry. A spokesperson for cigarette and tobacco company Philip Morris estimates that the illegal tobacco industry costs governments almost $A4 billion a year in foregone tobacco excise. The spokesperson adds that greater co-ordination between law enforcement bodies and regulators is needed to tackle the problem.

CORPORATES
PHILIP MORRIS (AUSTRALIA) LIMITED, AUSTRALASIAN ASSOCIATION OF CONVENIENCE STORES INCORPORATED, AUSTRALIAN LABOR PARTY, ATA INTERNATIONAL

Tax leak as tradies borrow Bunnings ABN

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Original article by Nick Tabakoff, Amos Aikman
The Australian – Page: 1 & 8 : 2-Aug-17

Paul Drum of CPA Australia has called for major changes to the Australian Business Number system, arguing that it is being widely rorted. He says businesses are abusing the tax system by creating multiple ABNs or using incorrect ones. The chairman of the Federal Government’s black economy taskforce, Michael Andrew, adds that 3.5 million ABNs have been issued to companies or individuals that have not lodged a single tax statement or tax return. The push for reform comes amid revelations that many tradespeople are exploiting the tax system by issuing invoices that quote the ABN of hardware giant Bunnings.

CORPORATES
CPA AUSTRALIA, BUNNINGS GROUP LIMITED

Tax blitz on lawyers, accountants

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Original article by Duncan Hughes, Joanna Mather
The Australian Financial Review – Page: 1 & 8 : 14-Jul-17

The Australian Government’s taskforce on the black economy is slated to release its final recommendations in October 2017. The head of the taskforce, Michael Andrew, has proposed greater scrutiny of lawyers and accountants as part of the effort to combat the cash economy, which is estimated to be worth around $A30bn. The taskforce has examined a number of options for addressing the issue, including a ban on cash transactions exceeding $A10,000, providing incentives for companies to shift to non-cash business models and offering an amnesty for cash-only businesses that transition to electronic payments.

CORPORATES
AUSTRALIAN TAXATION OFFICE, KPMG AUSTRALIA PTY LTD, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, INSTITUTE OF PUBLIC ACCOUNTANTS LIMITED, AUSTRALIA. DEPT OF FINANCE, PROPERTY COUNCIL OF AUSTRALIA LIMITED, RESERVE BANK OF AUSTRALIA, THE TAX INSTITUTE, NATIONAL PRESS CLUB (AUSTRALIA)

Call for $10,000 limit on cash deals to fight black economy

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Original article by Nassim Khadem
The Age – Page: 18 : 5-Jun-17

Putting an expiry date on $A100 notes is one of the options that Michael Andrew is looking at in a bid to reduce the impact of the cash economy on government revenue. Andrew, who is in charge of the Australian Government’s Black Economy Taskforce, says other options include making electronic transactions more attractive by reducing card fees and imposing a ban on all cash transactions over $A10,000. It has been estimated that the cash economy costs the Government up to $A15 billion, due to "illegal welfare payments" and foregone tax revenue.

CORPORATES
AUSTRALIAN FEDERAL POLICE, AUSTRALIAN BUREAU OF STATISTICS, BUNNINGS GROUP LIMITED, AUSTRALIA. BOARD OF TAXATION, AUSTRALIAN CRIME COMMISSION, AUSTRALIAN CUSTOMS AND BORDER PROTECTION SERVICE