With just three sleeps to go until the October 31 personal income tax return deadline passes, you might be tempted to “forget” a few things when it comes time to record your income. That might include the odd dollar or two you made trading in the supposed anonymous world of cryptocurrency, the side-hustle buying and selling junk on Facebook’s Marketplace or even the interest you earned on that European bank account you inherited from Grandma. There’s a good chance the Australian Taxation Office has you in its sights already — and if you do decide to try it on, a “please explain” letter might soon replace the tax refund notice you are expecting.
In the past, dodging tax was almost a national pastime. These days, however, things have changed dramatically. The ATO said that over the past five years it had received nearly 250,000 tip-offs and, of that, 90 per cent resulted in further investigation.
Examples include a hairdresser who operated on Facebook and would only accept cash, and a fish and chip shop owner whose lifestyle and travel habits didn’t seem to match the declared income from the business. Wayne Leggett ATO assistant commissioner David Goding said tip-offs came from a variety of sources, including customers, staff, competitors and even family and friends. “When we receive information through a tip-off, we crosscheck the information and assess whether further action is required,” Mr Goding said.
The information available to the ATO for “crossche.
