Bunnings embroiled in enormous tradie tax scam
Thousands of tradies are reportedly using Bunnings to dodge tax, in a scam that is costing the Australian government hundreds of millions of dollars every year.
The Australian reports that the alleged scam has seen tradies list the Bunnings Australian Business Number (ABN) instead of their own on invoices.
As a result, the Black Economy Taskforce believes the retailer is stopping the tax office from keeping accurate track of income of tradesmen around the country. Bunnings reportedly has one of the most frequently quoted ABNs in Australia.
Michael Andrew, chairman of the Black Economy Taskforce, said, “We found out that more than 40 per cent of ABNs quoted in the Northern Territory were Bunnings.
“People ask for an invoice or valid receipt and they get the name of the company, but they then get an ABN of someone else such as Bunnings: the result of which (is) you can’t trace then where the money really went.”
The Australian notes that there is no suggestion that Bunnings has done anything wrong, but points to tax industry voices who are warning of a crisis in the ABN system.
CPA Australia’s policy boss Paul Drum said, “Businesses are “exploiting weaknesses in the ABN system by quoting incorrect ABNs, creating multiple ABNs or improperly using an ABN, including sham contractor arrangements”.
What’s your take on the Bunnings scam?