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Date: April 30, 2024 Tue
Time: 12:16 am
Time: 12:16 am
Results for black economy
1 results foundAuthor: Australia. The Treasury Title: Black Economy Taskforce. Interim report Summary: The black economy is a significant, complex and growing economic and social problem. Black economy activities: undermine the community's trust in the tax system; create an unfair commercial environment which penalises businesses and individuals doing the right thing; enable and entrench the exploitation of vulnerable workers; undermine tax revenue; and enable abuse of the welfare system. If unchecked, increasing black economy participation can lead to a dangerous dynamic. It can foster a culture which legitimises and supports this participation, spurring its further growth. As revenues fall, those remaining in the formal economy may ultimately be faced with higher tax burdens, giving them a greater incentive to move into the shadows. All other OECD countries are grappling with the black economy issue. Australia is not alone. While the black economy is a long-standing problem, new vulnerabilities and threats are emerging as a result of fundamental economic, social and technological changes. The high cost of tax and non-tax regulatory burdens, pressure on business margins, the proliferation of new business models (including the sharing economy) and forms of work, complex interactions with illegal activities, exploitation of workers (including migrants), and changing social norms are influencing this landscape. The Australian Bureau of Statistics (ABS) estimated in 2012 that the black economy had grown to 1.5 per cent of GDP ($25 billion per year in today's dollars) in Australia. In the absence of a concerted and sustained whole-of-government effort, this figure can be expected to continue to grow. Given the linkages between different manifestations of the black economy, long-term multi-agency strategies and operations are needed. We must move beyond the business as usual mindset, recognising the limitations of traditional tax enforcement approaches. There is a clear need to act now. Community views on tax avoidance and evasion (particularly by large firms and multinationals) have noticeably hardened in recent years. At the same time, businesses, both large and small, are operating in a more competitive commercial environment, tempting some to push the boundaries (in their supply chain management, use of contractors and payment of wages). But this challenge is also an opportunity. With the intelligent application of emerging technologies, better use of data and a genuine whole-of-government focus, the tools we need are available. It is not too late, but we need to act now rather than wait. Business as usual is not an option. We can't audit our way out of this problem through traditional means. We have seen considerable innovation from other OECD countries in this area. A 21st century black economy strategy is needed in this country. The Black Economy Taskforce is a partnership between Australian Government agencies and the private sector. It is led by an independent chair and supported by a Secretariat in the Commonwealth Treasury. The Government has asked the Taskforce to develop a forward-looking, innovative and whole-of-government black economy strategy. This is our Interim Report, which sets out our initial findings and identifies a number of early actions. Our Final Report will be delivered to the Government in October 2017. Details: Canberra: The Taskforce, 2017. 74p. Source: Internet Resource: Accessed September 1, 2017 at: https://consult.treasury.gov.au/tax-framework-division/black-economy-taskforce/supporting_documents/BE_IR.pdf Year: 2017 Country: Australia URL: https://consult.treasury.gov.au/tax-framework-division/black-economy-taskforce/supporting_documents/BE_IR.pdf Shelf Number: 146999 Keywords: Black EconomyEconomic CrimesFinancial CrimesTax EvasionUnderground Economy |