Minerva
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most of those answers seemed to be from america, so there is a slightly diff answer for australians.
it is possible that the employer will tell you ato that they employed you. they can often get tax breaks with their employees wages, super etc.
if it is "cash in hand" they cant really find out unless someone dobs on you.
if you are ever audited, they may be able to figure out that you were not truthful.
other than this, there is no real way for them to find out. if they do find out though, you can be in a lot of trouble. |
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johnnyjr2430
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you look like me!! |
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markmccloud_1
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They do now. |
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Nusha
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They do not, but if you were audited and they were to look at your spending and all your expenses they have the ability to recreate your income from whatever records they can find.
Besides if that is your only income you may not make enough to file a tax return. In addition if you have very low income you may qualify (depending on your situation) for money back from the government from the earned income credit. |
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Camperdown T
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The Australian Tax Office (ATO) has for quite a few years now been determined in its investigations of the cash economy, particularly in the construction, domestic services, agricultural and hospitality industries. Employers who pay cash, should they come under scrutiny, will have all their records examined by the ATO. When the ATO do this they may find your details somewhere in the employer's records and follow the "audit trail" to you and confront you with a "please explain". That's typically how the government finds out. |
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anubhavklal
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If it is small income govt will not worry about it and you should also not worry about hiding it. How much tax can you save by hiding it. If I was in your place I would have been honest and declare all income. In that case at least my conscious will not be worrying. Even if govt can not but God definitely will find out :-). and God blesses those who are honest with a lot of wealth. Pay your taxes not by fear of getting caught but what your conscious asks you to pay. |
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magpiez
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OK every one stop and take a look at the section... this is in AUSTRALIA & NZ taxes so keep the american stuff out of it.
I can tell you a few things about the ATO and cash.
1) dont think for a second they cant find out, take my word for it- they can and do.
2) Most people think cash is anonymous and and an easy way to avoid tax. Forget it the ATO favourite pastime it "Cash economy" and they really have the best of the "hunters and collectors" out there chasing people like you and its very much a case of "you can run but you cant hide".
3) The penalties are nasty and the ATO likes to make an example of this kind of conduct.
Stop and think about it for a while.. what happens if......
- the person paying you gets audited- believe me they will catch up with you too
-the person paying you gets someone off side and they dob that person and or you in.
-Fed govt agencies data match that is they compare information held my all other agencies and various bodies and other private sector bodies and inevitably alarms bells go off becasue if you are earning cash you have to spend it otherwise its pointless having the money and if you do spend it then you are leaving a nice little trail for the ATO bloodhounds to follow. And while some people get away with it for a while it backfires on them in the end becasue the longer you get away with it the bigger the penalties and interest when they catch you. |
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Sara
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As long as you don't put the cash that you make into a bank account, they will have no way of tracing it. The best way to do it is just to kep the cash in a safe place. If you put the money in the bank and you get audited, they will ask to see your bank statements and you will have to prove where all of the deposits came from. Your best bet if you are just doing some work for friends, or something like that is to just keep the cash. |
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Michael C
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Only if the person you work for reports it to the IRS (or Social Security) If so, then yes, if not, then no. |
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JD
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Only if you tell them. Looks like you just did. How much cash are you making? It would help them out even more if you advertised that too. |
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earthgirl766
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if you are doing the cash job for one of their agents; yes |
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David B
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Just be sure to get paid cash in hand and not to deposit the invisible money in a visible account incase of financial auditing. A good place to put funds would be a safety deposit box in this case.
Many illegal business funnel funds through front business effetively money laundering
Be aware that tax evasion is illegal and you can get in serious trouble if you are investigatied and can even lead to imprisonment if caught. My best advice is to declare it as everyone else does. |
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kerry k
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No, they do not. The IRS is not as "all seeing" as they would like people to believe that they are. They will play that game with you, but they only know what you tell them. The only other way for them to know is if an employer files a 1099 for your services. By the way, one other point, IF you sell personal property with no intentions of buying more stuff to sell, that is, selling things as a business, you're just selling off personal stuff you don't want anymore, then the money received from those sales does not have to be declared. |
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You da man, Idaho
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Don't worry about it. There's no way they know. Many people do it. It's not a problem............don't even think about it, especially if it's small jobs. |
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elle55407
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Have you ever heard the line, "Big brother is watching you?" What a lot of Americans don't realize, is that there are literally millions of IRS employees, each one of them assigned to a regular Joe, just like you, to make sure you aren't pocketing any extra cash on the side without paying taxes on it. They are lurking everywhere and you never know which of your friends is actually YOUR big brother, just gathering information. Be afraid. Be very afraid.
So in answer to your question...No. They would have no clue. |
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