Paying cash is not an issue. It is still legal tender.
Cross referencing invoices can pick up these inequalities.
Not if it isnt invoiced !
pinkboy
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Paying cash is not an issue. It is still legal tender.
Cross referencing invoices can pick up these inequalities.
Not if it isnt invoiced !
pinkboy
I'm fairly sure the rules are similar here.
They may be caught in a round about way.
When auditing the suppliers of the deli, they will see invoices for items delivered. The deli doesn't claim this item...sending up red flags.
Our tax preparer told us they have to provide info from one tax payer, to validate another tax payer, when an invoice is in dispute...cross referencing.
Just like I don't care if our carpenter claims any income we pay him, but we claim it as a deduction. All Revenue Canada need to do, is check and see if the carpenter claimed the income we paid him....cross referencing.
They cannot work out data they don't get though
1. The bakery down the road in the LIA does a roaring trade selling pies, sandwiches, rolls etc to workers, though I note some money goes through the till and other money goes through a big white bucket
I'm sure there's many more examples
I think it is a great idea.
Now make it more useful.
When someone has a judgement against another person/business, maybe it should be lodged at the ATO, so payments can be garnisheed.
I knew a baker who got audited several years ago. The ATO can check your purchases and then they know how many loaves of bread a bag of flour should make. My baker friend reckoned they were pretty spot on.
The problem with cash is how do you get rid of it. If you spend it on things - cars, boats, houses etc etc the ATO can decide your declared income could not have supported that, issue an assessment and the onus is on the taxpayer to show the ATO is wrong.
Non residents in particular can get away with never filing tax returns and never paying tax on rent from mortgage free properties.
Please elaborate on this because I am a non resident and would like to know if I can legally avoid paying tax on my rental income.
I thought non residents who had income derived in Oz (rent, share dividends) were legally obliged to lodge a tax return?
Can I lodge my annual tax return and simply not declare any rental income and the ATO can't do anything about it?
You're correct. Tax non-residents are legally obliged to lodge a tax return declaring income derived in Australia.
Physically, you can lodge whatever tax return you want, but you'd be breaking the law. The question in the context of this thread is whether the ATO has the data mining capabilities to find out you're breaking the law.
Thanks for confirming.
I've just started my 11-12 tax return and have a big capital gains event after selling a property. I would love to avoid paying CGT but don't think it can be avoided.
Please elaborate on this because I am a non resident and would like to know if I can legally avoid paying tax on my rental income.
Can I lodge my annual tax return and simply not declare any rental income and the ATO can't do anything about it?
I thought non residents who had income derived in Oz (rent, share dividends) were legally obliged to lodge a tax return?
why? you can do it anyway. usually the person will be so stuffed anyway that it will rob money from other creditors so the process will bankrupt them, the transaction reversed as preferential and the person holding the judgement would have been better to negotiate a reasonable outcome
not worth running the gauntlet to find out..