CASHLESSNESS

Again, let's focus on coffee shops and nail salons and forget about the corporate giants who pay almost no tax by offshoring profits and by other means.

Businesses are operating as cash-only to avoid paying tax

According to research by the Australian Taxation Office (ATO), two-thirds of consumers believe cash-only small businesses are profiting from getting away with paying less tax.
An ATO blitz last year forced seven out of 10 cash-only businesses to increase the amount of tax paid, totalling $200 million in tax and penalties.
About 20 per cent of cash-only businesses say providing card payments is too expensive.
Leading GST and tax expert Ken Fehily, who also advises the ATO and Treasury, said Australians had good reason to be suspicious of cash-only businesses.
He said small business’ avoidance of tax is “exceptionally widespread”.
The Black Economy Taskforce (an initiative of the federal Treasury) estimates the ‘black economy’ to be worth as much as $50 billion, more than twice what the Australian Bureau of Statistics estimated in late 2016.
Mr Worthington said many businesses only accept cash, with some classic examples including massage parlours, nail salons and tattoo studios.
“If it’s only accepting cash, you’ve got to question the validity of that business and whether they’re paying tax,” he said.
“They could be avoiding paying their GST tax, or avoid paying tax altogether, full stop.
“There is no legitimate reason other than to selfishly allow themselves to earn more money.”

MEANWHILE …

Mossack Fonseca: inside the firm that helps the super-rich hide their money

Since 2008, and the global financial crisis, cash-strapped exchequers [treasurers/finance ministers] had been trying to get their hands on billions in potential tax revenue hidden offshore.
How serious these attempts were was a matter for debate.
What wasn’t in doubt were the vast sums involved. According to the US economist Gabriel Zucman, 8% of the world’s wealth – a vast $7.6 trillion – was stashed in tax havens.