The Australian Taxation Office has indicated that it intends to crack down on some 50,000 small businesses in an attempt to stamp out tax abuses involving bartering, ABC News Online revealed this week.
According to Tax Commissioner Michael Carmody, officials have uncovered a number of serious breaches of tax compliance, particularly where firms have deliberately inflated the value of a good or service or have not declared the full value of a transaction.As a result, the ATO has launched a nationwide investigation into the practice of bartering.
"We're wanting to make sure that people know what their obligations are as far as bartering is concerned, that a barter exchange is the same as any other exchange for business purposes, so the business income and the business expenses need to be treated accordingly," Robert Walsh, an assistant tax commissioner explained to ABC News.
A team of around 40 tax officers have been tasked with investigating the activities of firms using this non-monetary form of payment for goods and services.
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