A range of additional industries will be targeted in the latest Tax Office (ATO) crackdown on the cash economy.
Clothing and textiles, pubs, clubs and taverns, and the security industry are the "potentially high-risk industries" identified by Taxation Commissioner Michael Carmody.
This is in addition to cash economy investigations already under way in "high-risk industries" including building and construction, road freight services, taxis, cafes, restaurant and takeaway food outlets, hairdressing and beauty salons, and cleaning services.
At this week's meeting of the Cash Economy Taskforce, made up of senior ATO staff, academics, industry representatives and business people, the ATO outlined its compliance focus for the current financial year.
The ATO is selecting businesses for review based on a range of financial ratios which show substantial variations from industry averages (established using data from income tax returns and activity statements).
"The increased field presence and cash economy projects aim to support the vast majority of businesses doing the right thing," Carmody says.
"Honest business operators don't want to be undercut by those deliberately seeking to avoid their tax responsibilities."
The ATO will contact around 85,000 businesses over the coming year as part of its expanded cash economy program to investigate undeclared income.
Approximately 20,000 of these businesses will be visited by a tax officer who specialises in detecting undeclared income and identifying businesses operating outside the tax system.
Of the more than 3,000 tax officers out in the field, 600 specialise in detecting omitted income and businesses operating outside the system.
Carmody says the new tax system has made it harder than ever before for businesses to operate outside the system.
The ATO estimates an extra $2.6 billion will be collected by June 2003 as a result of the new system's impact on the cash economy.
Collections to date are consistent with that outcome.
People who have information about businesses doing cash deals to avoid tax can call the Tax Evasion Hotline on 1800 060 062, Monday to Friday, 8am to 6pm, or email
here.
Over the past year the Tax Evasion Hotline received 40,000 tip-offs from the community. Of these, 23,000 warranted further investigation and resulted in an additional $44 million of revenue being raised.