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Australian tax authority to fight tax avoidance in gig economy

Source: Xinhua| 2019-01-23 10:53:25|Editor: WX
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CANBERRA, Jan. 23 (Xinhua) -- The Australian government has announced a tax crackdown on 10.8 million Australians who make an income from sharing-economy platforms.

The Treasury on Wednesday published a discussion paper with plans to ensure that people working in the gig economy pay their fair share of tax.

Major players in the industry include ridesharing service Uber and accommodation platform Airbnb as well as food delivery services.

Under the plan the government would consult with those companies on a mandatory reporting regime that would see the platforms report data to the tax office so that users' earnings could be accurately assessed for tax purposes.

Treasury said that the regime would ensure tax compliance and relieve millions of Australians who use the digital platforms of onerous self-reporting obligations.

"More and more Australians are making use of the greater choice provided by platforms like Uber and Airbnb, leading to significant growth in the sharing economy," Zed Seselja, Australia's Assistant Treasurer, said in a statement on Wednesday.

"But as it grows, there is a risk that some individuals are not reporting their full income and avoiding the right amount of tax.

"We are committed to making sure people pay their fair share of tax."

Treasury's second option, which the government has ruled out adopting, would use banks and the financial sector to track income and transactions.

The Australian Tax Office (ATO) has previously been unable to calculate the amount of tax forgone by gig economy workers who did not properly report their income.

Seselja said that the government "is working with the sector on the best way to fix this (tax payment) issue."

"When everyone pays the right amount, it levels the playing field for businesses and people working in the sharing economy, creating competition and bringing benefits to consumers."

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