ATO’s crackdown on the restaurant, café and takeaway industry

Over the next three years, the Tax Office will review restaurant, café and takeaway businesses via various methods, including:

• Looking for lifestyle and spending habits that outweigh business income;
• Comparing businesses against the small business benchmarks;
• Reviewing third party information such as bank transactions and comparing it to what businesses have reported; and
• Investigating information provided by employees and the community

If a mistake has been made regarding the disclosure of business income or expense, remedy actions must be taken immediately by making a voluntary disclosure or contacting a tax advisor for assistance.

Hefty penalties may be imposed if a business is found not to comply with the Tax Office reporting requirements.

For more information, click here.