ACT Employer Not Paying Tax Contribution to ATO - What to Do?

Australia's #1 for Law
Join 150,000 Australians every month. Ask a question, respond to a question and better understand the law today!
FREE - Join Now

Sammy.r

Member
9 November 2015
2
0
1
Hi,

I have been working for a small business for most of this year, and have recently been made aware of the dodgy way my boss is paying us. I was, to be fair, made clear from the start that we were being paid under minimum wages, and partly in cash, but because of my naivety I was under the impression all my taxes were being paid properly to the ATO.

As I did not get a group certificate this year, I became suspicious and approached my boss with a couple of co-workers to discuss what was happening. I recorded the conversation (without my boss' knowledge) just as a protective measure. My boss admitted to our faces that he was taxing our cash, but not declaring it, meaning he was just keeping it for himself (can't really call it tax at all- more like a contribution of our wage to his new car fund). I have roughly calculated that I would've paid well over $2,000 in 'tax' this year, none of which I will be able to claim back in a tax return. I asked him to make this contribution directly to the ATO now, and give me a proper group certificate for it, but he has refused, so now I need help on what my next move should be.

Who should I approach for advice on this situation? The Fair Work ombudsman, or the ATO? What kind of documentation and proof do I need to supply? Can I use the recording which clearly has him saying he is pocketing our tax as a form of proof, or is it a violation of his privacy (as I have been told)? Am I in a position where I could be fined or get in trouble by the ATO if they can't prove that he has been keeping our tax? Can I be back-paid for what he owes me?

I just want to see something come of what is rightfully owed to me as an employee with employee rights - but I'm unsure where to start.

Thank you for your help!
 
S

Sophea

Guest
Hi there,

I would contact the ATO about it as it is a tax matter not so much an employment matter. With regard to the voice recording of your conversation, it is legal for a face to face conversation to be secretly recorded by a person who is a party to the conversation under the Listening Devices Act s4.

That section states the general rule that a person shall not use, a listening device (b) to listen to or to record a private conversation to which the person is a party, however an exception to that rule is provided in (3) where a party to the conversation consents to the listening device being so used, and the recording of the conversation is considered by that party, on reasonable grounds, to be necessary for the protection of that principal party’s lawful interests.