09 May 2019 Regarding Member 106’s comments ‘Chippie trust issues’
The ATO does see instances where employers require their workers to obtain an ABN when they are in fact employees. We will review businesses that we suspect are not engaging their workers as employees when they should be, thereby getting an unfair advantage by avoiding Pay As You Go Withholding and other employee entitlements such as superannuation, to which employees are entitled.
Tax professionals are well placed to identify these situations when they occur and we encourage you to report them to us using our online Tax Evasion Reporting Form.
Based on the information reported and how much detail is provided, we will cross check the information and assess whether further action is required to protect honest businesses and the community. Factors such as the strength of the allegation and the amount of detail provided will help us assess your concern and allow us to take action where appropriate.
Where we find a business has misclassified their workers we will work with them to transition them and their workers, if necessary, to the appropriate arrangements.
Relevant ato.gov.au links:
- Your workers: https://www.ato.gov.au/Business/Your-workers/
- Tax Evasion Reporting Form: https://www.ato.gov.au/forms/tax-evasion-reporting-form/
- Tax Avoidance Taskforce – Trusts: https://www.ato.gov.au/general/trusts/in-detail/compliance/tax-avoidance-taskforce---trusts/