Why small businesses have a hidden fear of ATO

Small businesses play an important part in Australian society. They give people jobs, are a source of income to many people, and they keep the Australian economy strong.The tax that people and businesses pay to the Australian Government funds important community services like schools and hospitals, so it’s important you pay the right amount of tax. It is also important that we do the right thing by small businesses. ATO approach is to protect honest businesses from unfair competition.The majority of taxpayers do the right thing. However, some business owners deliberately avoid paying their fair share of tax. In doing so, they gain an unfair advantage over honest businesses. If businesses deliberately hide income to avoid paying tax they are participating in the ‘cash economy’. Hiding income includes paying cash wages to staff without keeping records, not declaring cash sales, not recording online