NEWS

A case that makes you think about all of those businesses making their fortune quicker then any competitor in their industry. And why would they stop!?

Original article:
Two businessmen who own or collect license fees from about 20 Italian Village Pizza stores in Western Pennsylvania admitted in federal court Wednesday that they systematically underreported their sales to the Internal Revenue Service and encouraged their franchise holders to do the same…

“We are taking a closer look at the cafe, restaurant, catering and takeaway industry because about 40,000 businesses in the industry [nationwide] lodge late,” ATO senior assistant commissioner Michael Hardy.

“The ATO has been able to use the data from contractor reporting in the building industry to identify those businesses in the building trades that don’t have any involvement in sub-contracting, and so are mostly operating in the business-to-consumer end of the market,” Mr Hardy said. “Omitted income is more prevalent in the business-to-consumer end of the market so this information lets us sub-divide the market more carefully.”

The tax authority has been tracking the credit card transactions of almost 1 million businesses. The 275,000 businesses that were targeted were flagged as part of the Tax Office’s wider data-matching program.

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