The Australian Taxation Office (ATO) has recently intensified its efforts to combat tax evasion through the use of electronic sales suppression tools (ESSTs). These tools, often integrated into point-of-sale systems, manipulate transaction records to evade taxes. Since October 2018, manufacturing, supplying, possessing, using, or promoting ESSTs has been deemed illegal in Australia.
In the past two weeks, ATO officers executed raids on 17 premises linked to three businesses suspected of supplying or manufacturing ESSTs, as well as eight businesses suspected of employing ESSTs in Sydney, New South Wales. During these operations, authorities unearthed compelling evidence of ESST distribution and usage, alongside a substantial cache of electronic and business records.
To bolster their efforts, the ATO collaborated with New South Wales Police, resulting in the seizure of $269,800 in suspected laundered money from two properties. Assessments totalling over $23 million have been issued in connection with the raids, with recovery measures already underway.
These raids represent the ATO's unwavering commitment to upholding tax integrity and combating illicit practices that undermine the nation's revenue system. As investigations continue, businesses and individuals engaging in tax evasion practices are urged to reconsider their actions. The ATO remains vigilant and steadfast in its pursuit of tax compliance and fairness for all Australians.
Source: Raids uncover illegal sales suppression technology, ATO website, 6 March 2024, accessed 6 March 2024.
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