Cafes and coffee shops
In the last newsletter I described audit methods the ATO was employing in their fight against the cash economy within the construction industry.
Those within the cafes/coffee shop/restaurant business are also in the ATO sights.
The ATO have also accessed sales records of coffee supply companies; and where a business is purchasing more than $15000/month worth of coffee, they could expect an audit from the ATO if their reported sales don’t reflect the amount of coffee being purchased.
You must remember that the ATO is collecting vast amounts of data via Business Activity Statements and Income Tax Returns and can easily build up benchmarks and profiles that allow them to compare individual businesses.
Any taxpayer that doesn’t fall within normal parameters can expect a ”knock on the door” from the ATO and be asked to “please explain”.