A review of the Australian Business Number (ABN) system has proposed the adoption of fees for ABN registration and renewals as part of efforts to crack down on misuse of ABNs, which have been used to facilitate fraudulent activity. The ABN system has been in place since 2000, with around 7.7 million ABNs having being issued since then, including over 860,000 in the last financial year. From The AFR:
Fines and jail time should be increased to crack down on misuse of the Australian Business Number system, part of efforts to stop dodgy practices and criminal activity…
The federal government’s black economy taskforce and tax experts have warned the system is regularly misused by dodgy operators, using ABNs to give a false sense of legitimacy and to deceive other firms and consumers…
Fees for registration and renewal could help discourage people from holding an ABN when they did not need one…
BDO national tax director Lance Cunningham said… a more effective approach would be linking the ABN system with annual tax returns.
“If you don’t lodge a tax return, or can’t for whatever reason get an extension of time for your return, then the ABN could be cancelled.”
ABR figures show a large increase in individuals applying for an ABN; although flexible work arrangements and the rise of the sharing or gig economy would have played some part:
Nevertheless, the sharp rise in individuals applying for an ABN suggests some shady activities are taking place, and should have alarm bells ringing.
