The Tax Office has disclosed that it has received 250,000 tip-offs regarding tax avoidance and dishonest behavior since July 2019.
These reports have come from various sources, including businesses, customers, employees, family members, and community members, highlighting individuals involved in tax evasion.
Since July 2019, the ATO has received 250,000 tip-offs, with over 47,000 submitted in the 2023–2024 financial year alone.
Australians are increasingly reporting tax cheats because they recognize the harm caused by undermining the tax system, according to the ATO.
ATO Assistant Commissioner Tony Goding explained that tax evasion deprives essential community services of much-needed funding.
“Australians are tired of dodgy behavior in their communities and are stepping up to level the playing field by reporting it to the ATO,” Goding said.
Common tip-offs involve taxpayers failing to declare income, requesting cash-only payments, paying workers in cash to avoid taxes and superannuation, underreporting sales, or living a lifestyle inconsistent with their declared income.
Based on community reports, the ATO estimates that tax avoidance has led to $16 billion in lost revenue annually, largely due to businesses operating under the table.
The top industries targeted by tip-offs during the 2023–2024 financial year include building and construction, cafes and restaurants, as well as hair and beauty services.
Goding emphasized that businesses engaging in tax avoidance not only cheat the tax system but also gain an unfair advantage over their competitors, ultimately hurting customers.
“The number of reports we’ve received indicates that Australians are fed up. Dodging taxes clearly doesn’t pass the pub test anymore,” he said.
In 2023–2024, New South Wales led in tip-offs with 15,516, followed by Victoria with 11,256, and Queensland with 10,629.
Goding pointed out that while most reports came from Sydney and Melbourne, regional areas also saw significant activity. In fact, the top three regional towns for tip-offs were in Queensland—Mackay with 4,740, Bundaberg with 4,670, and Caboolture with 4,510.
According to the ATO, community tip-offs are a valuable source of information, with nearly 1,000 received each week. In the 2023–2024 financial year, 90% of these tip-offs warranted further investigation.
When deemed suitable for follow-up, cases are handled by specialized teams or task forces, such as the cross-agency shadow economy task force.
In early 2024, community tip-offs played a key role in helping the ATO crack down on businesses using electronic sales suppression tools to avoid paying nearly $23 million in taxes.
Goding added that submitting a tip-off is anonymous, quick, and straightforward.
“When we receive a tip-off, we cross-check the information to determine if further action is needed,” he said.
“A tip-off can provide crucial information during an investigation, often sealing the fate of those intentionally evading their obligations.”
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