ATO issues warning to cash-only businesses

The Australian Taxation Office says it’s cracking down on cash-only businesses, saying it “doesn’t make sense” in 2022 and rings alarm bells about possible tax evasion.

Peter Holt, Assistant Commissioner at the ATO, made a plea on 3AW Drive with the community to dob-in businesses they suspect aren’t declaring their entire income.

He said there had been more than 130,000 tip-offs in the past couple of years, suggesting people had “had enough” of dodgy dealings.

While some people still prefer being paid in cash, Mr Holt said it was a red flag for the ATO.

“It does send warning signals to us, immediately,” he said.

“It just doesn’t make sense in this day and age.”

Press PLAY below to hear his warning to businesses