More than 30 dining businesses in Darwin received surprise visits from tax and Fair Work officials this week.
The visits are part of Operation Sentinel, which is cracking down on those businesses suspected of cooking their books, exploiting workers and avoiding alcohol tax.
The tax office says the visits happened from Tuesday to Thursday (August 26-28) and targeted fast food outlets, restaurants and cafes.
Australian Taxation Office Assistant Commissioner Tony Goding says the operation is driven by a joint Shadow Economy Taskforce that is cracking down on illegal or untaxed business practices.
“We’ve visited more than 30 businesses this week in Darwin suspected of unlawfully taking advantage of their workers and / or avoiding their tax and super obligations,” Goding says.
The businesses are suspected of paying workers cash-in-hand to avoid legal obligations, paying below-award wages, not paying superannuation, under-reporting income, not keeping proper records like pay slips and avoiding alcohol tax.
He says the businesses were also reminded of their legal obligations to the government and workers.
Fair Work Ombudsman (FWO) Anna Booth says protecting workers’ rights (including those of migrants and young staff) is a priority for them.
“The Operation Sentinel investigations in Darwin are part of efforts to ensure those who are doing the wrong thing are being found out and held to account,” she says.
Investigations into the Darwin businesses are ongoing, the ATO says.
MORE TO BE AWARE OF, SAYS ATO
“If you run a business, don’t think you can get away with exploiting your workers or ripping off the community as we have methods to uncover shadow economy activities,” Goding says.
“ ‘Cooking the books’ by ripping off your workers and dodging your tax and super obligations doesn’t pass the pub test.
“Businesses that engage in the shadow economy are deliberately undercutting their competitors, gaining an unfair advantage over honest businesses doing the right thing and stealing from their employees’ futures.
“We will find out about it and take action.”
Operation Sentinel also put pubs and bars on notice to comply with their tax obligations.
“Some businesses who deal with alcoholic beverages evade their excise and GST obligations by operating outside the law,” Goding says.
“This allows them to undercut legitimate businesses, creating unfair competition and posing risks to public safety.”
HOW TO REPORT
To learn how to report suspected tax evasion or shadow economy activity, visit www.ato.gov.au/tipoff.
“When we receive information through a tip-off, we cross-check the information and assess whether further action is required,” Goding explains.
Booth says fast food, restaurant and cafe workers with concerns about their pay or entitlements can contact the FWO anonymously if they prefer.
The FWO has targeted information to help employers and employees in the fast food, restaurants and cafe industry, and any franchisees.
Visa holders should also be aware that they have the same workplace rights as all other workers, she says.
MORE RESOURCES ONLINE
- When hiring employees for the first time, business.gov.au has an online Employment Contract Tool to help small business owners make a basic, compliant employment contract.
- The ATO has information availableto help business owners understand what their obligations are for each worker they hire.
- The tax office also has information availableto help businesses get it right from the start and understand their alcohol tax obligations.
MORE ATO NEWS: Check your status before filing your return
