ATO UPDATE – Electronic sales suppression tools (ESSTs), which can be used to facilitate tax evasion by manipulating records and under‑reporting income, were banned by the government last October.
A six-month transitional period was put in place to allow those who just possess an ESST to potentially avoid committing an offence or becoming liable to an administrative penalty if they let us know and provide us with all the information we need. This includes:
- their details, including business name (both legal and trading name), business address and Australian business number
- the name of the point of sale system and ESST
- the date they acquired the ESST or when they first became aware of it
- their contact details (telephone number and email) and the way they prefer us to contact them.
The transitional period is now nearly over. Any businesses that think they may have an ESST should contact their point of sale (POS) system provider. If the provider advises that their POS version contains an ESST, they should ask them to remove the tool and then let us know.
For more information, visit ato.gov.au/ESST
Article supplied to Small Business Association by the ATO.