The ABC has reported the ATO is clamping down on small businesses using sales suppression software to minimise tax.
Ms Jenkins said the ATO was also cracking down on the use of sales suppression software that disguised the transactions within a company’s records.
“There is some really sophisticated software out there that is helping people avoid paying the right amount of tax.
“But whether it is cashless payments or whether it is the use of platforms or apps, it means there is really a trace of your transactions.
“We use merchant data and other sources of information to identify where things just don’t look right. Then we go and have a chat to them and say, ‘Hey, can you explain?’
In the mid 1990s there was sales suppression scam operating in the newsagency channel. I became aware of it because my newsagency software company lost businesses because we refused to offer such a facility.
There was a software program into which the retailer could enter a code and then an amount of cash they wanted to take out of the business unreported. A second set of records was maintained for the ATO and another records for the business owner.
I know because the software was demonstrated to me several times, by someone who had worked for the software company that created the software. They had approached me. I did some more checking with newsagents and discovered the facility in the software was being used.
The matter was reported to the ATO. At their then Box Hill office in Victoria they assembled a task force including representatives from the ATO, Federal Police, Federal Attorney General office. Victorian State Revenue and Victorian Attorney General office. Several of us with knowledge were brought in for a demonstration of the software. There were several follow up meetings with the ATO in Sydney.
Eventually, my software company stopped losing sales due to us not having the tax avoidance facility in our software.
Any retailer deliberately and systematically underreporting their income to avoid tax deserves what they get from the ATO and from any suppliers they impact through their actions.
- We refuse to help any retailer avoid tax.
- We will not code for tax avoidance in o0ur software.
- We will report it if we see it.
- Retailers and taxpayers need to be able to trust POS software.