Community losing $11 billion a year in ‘shadow economy’ rorts

The ATO is using intelligence from tip-offs as part of its approach to dealing with the shadow economy.
The shadow economy (previously referred to as the black economy) refers to activities that take place outside of the tax and other regulatory systems. The ATO estimates that the community misses out on around $11 billion in taxes each year as a result of the shadow economy.
Topping the list of industries the ATO was tipped off about in the past year, were building and construction, hairdressing and beauty services, cafés and restaurants, road freight transport, and management advice and related consulting services. NSW topped the list with more than 13,400.
ATO Assistant Commissioner Peter Holt explained that tip-offs helped the ATO shine a light on tax avoidance and protect honest businesses.
“Every dollar of tax dodged is a dollar that can’t be used for vital services like health and aged care,” Mr Holt said.
“We get tip-offs from other businesses, customers, members of the public, even employees. The surge in tip-offs tells us the community is not willing to let this behaviour slide anymore.”