Courier Mail article 15/03/15 - Tax Office launches blitz on hidden economy

[tikogoh]

Saw this article this morning

http://www.couriermail.com.au/news/queensland/tax-office-launches-blitz-on-hidden-economy/story-fnn8dlfs-1227262726812

The top targets are what I'm more concern about

TOP TAX TARGETS

•Cafes and restaurants

•Hair, beauty and nail services

•Cleaning services

•Carpentry

•Electrical

•House construction

•Painting and decorating

•Plumbing

•Road freight

•Waste skips

Looks like I better hurry up before the financial year finishes

[NorthsideGentleman]

When are they going to crack down on all these openly advertised "cash only" food businesses?

I was at Blackwood street at Mitchelton last Sat with only my card, all but one food joint had a cash only (tax withholding) policy

Complete bullshit if you ask me, 4 places (2x fish and chips, 2x bakeries) in a row had cash only, had to settle for the Cafe joint (top food though)

Impossible to prove how much food they have sold/chucked at the end of each day.

[popeye96]

Saw this article this morning

http://www.couriermail.com.au/news/queensland/tax-office-launches-blitz-on-hidden-economy/story-fnn8dlfs-1227262726812

The top targets are what I'm more concern about

TOP TAX TARGETS

•Cafes and restaurants

•Hair, beauty and nail services

•Cleaning services

•Carpentry

•Electrical

•House construction

•Painting and decorating

•Plumbing

•Road freight

•Waste skips

Looks like I better hurry up before the financial year finishes

You shouldn't be concerned unless you are in one of the groups and dodging paying tax and get audited. No different to any other year.

[tikogoh]

I'm concerned because if the taxman catches them, out the door they'll go

[dohdoe]

Complete bullshit if you ask me, 4 places (2x fish and chips, 2x bakeries) in a row had cash only, had to settle for the Cafe joint (top food though)


Businesses need to pay for the privilege of offering an eftpos machine.
A few thousand dollars a year. Businesses pass that on to you in a way I guess as you pay for the benefit of taking your own money out to pay for things.

Until they are offered for free cause the banks don't make enough money, businesses will continue with the cash only option. Especially with small family businesses.

[cheese69]

Businesses need to pay for the privilege of offering an eftpos machine.
A few thousand dollars a year. Businesses pass that on to you in a way I guess as you pay for the benefit of taking your own money out to pay for things.

Until they are offered for free cause the banks don't make enough money, businesses will continue with the cash only option. Especially with small family businesses.

This is exactly right. Don't have a go at the businesses, have a go at the banks. And don't comment unless you've had a small business, because you really have no idea.

[RottenLittlePunt]

This is exactly right. Don't have a go at the businesses, have a go at the banks. And don't comment unless you've had a small business, because you really have no idea.

Extremely short sighted for a business to only accept cash for the reason of bank charges. Businesses who think this is a valid reason should took a closer look at whether it's worth remaining open.

The more likely reason is that they are doing something dodgy.

[Rodgersodger]

This day and age we all use cards I think the problem is the banks with the fees they charge the merchant . Does the merchant pass on to customer or not, how many of use would like it if a massage shop said we need to charge you 2% or whatever it is to use card .. I think most would say I will pay cash

[RottenLittlePunt]

This day and age we all use cards I think the problem is the banks with the fees they charge the merchant . Does the merchant pass on to customer or not, how many of use would like it if a massage shop said we need to charge you 2% or whatever it is to use card .. I think most would say I will pay cash

Amore passes the fees on. I think most people would be more concerned about their real name being on record than the CC fees.

[cheese69]

Extremely short sighted for a business to only accept cash for the reason of bank charges. Businesses who think this is a valid reason should took a closer look at whether it's worth remaining open.

The more likely reason is that they are doing something dodgy.

Mate don't comment on things you have absolutely no idea about. Its not a matter of a business being short sighted - its a case of standing up to the bullying of banks who's fees surrounding merchant facilities are a disgrace and now with cards being used at 80% card/20% cash as opposed to 50/50 about 4 years ago is just yet another thing to hurt a small business' bottom line. Some businesses take cash only so that they don't pay taxes, yes. Personally I have no problem with this because in a lot of cases this is the only way a small business can make any money. It's mentalities like yours that will see the end of small business in the very near future and literally everything will be owned by Coles or Woolworths. Good luck with that.

[RottenLittlePunt]

Mate don't comment on things you have absolutely no idea about.

Right back at you. I work in the finance sector.


and now with cards being used at 80% card/20% cash as opposed to 50/50 about 4 years ago is just yet another thing to hurt a small business' bottom line.

As I said, short sighted. If 80% of business is now done on card they are pushing away customers just to save pennies on bank fees. The bank fees are insignificant when compared to the leverage you are gaining over your fixed costs such as rent, utilities, advertising etc.


Some businesses take cash only so that they don't pay taxes, yes. Personally I have no problem with this because in a lot of cases this is the only way a small business can make any money.

As I said, they shouldn't be in business.

[Rodgersodger]

RLP does that go for massage shops as well !! If a shop charges $60 pay a girl around $30 shop makes $30 pays rent electric eftpos if they have , and pay gst!! Don't fucking think so !! So in your words perhaps they should not be in business either !!

[RottenLittlePunt]

RLP does that go for massage shops as well !! If a shop charges $60 pay a girl around $30 shop makes $30 pays rent electric eftpos if they have , and pay gst!! Don't fucking think so !! So in your words perhaps they should not be in business either !!

If a business has to cheat the system to make a profit, then they aren't a viable business. That is exactly why it's so difficult to run a business, because there are so many cheats out there bastardising the industry.

All I am saying is that if business is so difficult, get the fuck out and do something that is a better use of your time. Don't whine to me about it and complain about how it's everyone else's fault except your own stupidity for sticking with it.

[Rodgersodger]

So stop supporting all the massage shops who Rort the system !!

[Bobbybouche]

Sounds like you boy's need to visit said shops and release some pressure. : )

[gpeck80]

RLP contributes a lot of good stuff here, but every now and then I swear he is typing with his uptight buttcrack.

[bigbob]

If a business has to cheat the system to make a profit, then they aren't a viable business. That is exactly why it's so difficult to run a business, because there are so many cheats out there bastardising the industry.

All I am saying is that if business is so difficult, get the fuck out and do something that is a better use of your time. Don't whine to me about it and complain about how it's everyone else's fault except your own stupidity for sticking with it.

so you dont get extras they dont pay tax for that

[RottenLittlePunt]

so you dont get extras they dont pay tax for that

I am not the one complaining about tax cheats, merely pointing out that they are the ones who make it difficult for others who are trying to do the right thing.

[gpeck80]

Rottenlittlepunt, do you own or part own a brothel ?

[BrainSex]

Massage shops and brothels really are such cash business.

The business split is so easy to do with cash, 50% to girl, 50% to shop, she gets paid directly. You see it in action at brothels, where I recall one place I paid the $200 to the reception, hands back $100 to give directly to girl. Hard but impossible to do that with EFTPOS.

I've just built the credit card surcharge into my prices knowing that people hate that charge. and everyone uses card these days.

Happy punting fellows.

[RottenLittlePunt]

Rottenlittlepunt, do you own or part own a brothel ?

No I am not an owner of any establishment in this industry.

[RottenLittlePunt]

Massage shops and brothels really are such cash business.

The business split is so easy to do with cash, 50% to girl, 50% to shop, she gets paid directly. You see it in action at brothels, where I recall one place I paid the $200 to the reception, hands back $100 to give directly to girl. Hard but impossible to do that with EFTPOS.

I've just built the credit card surcharge into my prices knowing that people hate that charge. and everyone uses card these days.

Happy punting fellows.

Massage shop owners rarely work this way. Most pay their girls on a weekly or fortnightly routine so they can withhold payment if the girl steps out of line. Most of the owners use standover/scare tactics to control their staff.