Originally Posted by
Hymie
Any business owner that thinks they are pulling the wool over the eyes of the ATO is a fool.
Say you are a Coffee shop owner that deals in cash only.
You collect your 3 or 4 Dollars per cup of Java and put it in the cash box and think to yourself, "Hmm, today I'll skim 20% off the top and declare 80%".
Now when the same bloke does his Tax he's going to claim all of his input costs isn't he?
X amount of bags of Coffee, X amount of Cups, X amount of Milk and Sugar.
The ATO has a Database on the 50 000 odd coffee shops in the system and pretty soon bells are going to start ringing when the numbers don't add up.
There have been a few caught out believe me.