MANDATORY REPORTING ON THE HORIZON FOR UBER, DELIVEROO ETC
In a response to a low level of tax compliance in the Gig Economy, a Treasury paper has been released exploring options for a mandatory reporting regime in this sector.
Treasury is considering one of two potential options, either:
- Applying mandatory reporting by the various sharing economy platforms, OR
- Placing a requirement on banks or payment processors to provide sharing economy platform transaction data to the ATO.
It would appear the option most likely to be implemented would be the first as this would be in keeping with the reporting of existing Taxable Payments.
Given the scale of revenue leakage from non-compliance in this sector, broad political support, and the relative ease of implementing a payment reporting regime, we expect that mandatory reporting will be legislated sooner rather than later.