Newsletter
October 2018 Newsletter
Beware of dodgy POS systems, as they can lead to big fines
After this year’s end of financial year, it was apparent to the ATO that some small businesses were manipulating the generic POS system to assist with avoiding their tax obligations. After this major fault was discovered, there is now a large fine of up to $1,000,000 for businesses who posses, utilise or have sold this type of software to other businesses.
The equivalent to a $1,000,000 fine is approximately 5,000 penalty units and can result in legal prosecution. This will only be charged to the business if they are found to be in action of this fraudulent activity. It is said that the technology within the POS systems have the ability to remove, change or add information into the current period it is trying to track, which is how business owners have the ability to change data to pay less tax. Small businesses who are found voiding items or making changes to current orders that customers have made will be audited and fined.
If you are using a regular POS system, then there is nothing for you to worry about as the ATO has the capability to decipher which businesses have deliberately manipulated data. It is urged that all small businesses record every transaction legitimately to avoid any unnecessary fines.
Source - Read the full article at My Business here: https://www.mybusiness.com.au/finance/5050-dodgy-pos-systems-could-lead-to-1m-fine