ATO to Crackdown on Small Business Delaying Tax Payments to Prop up Cash Flow

The ATO second commissioner said it was also gearing up for a major crackdown on large business.

The exterior of the Australian Government Taxation Office in Sydney, Australia, on May 28, 2012. AAP Image/April Fonti

The Australian Taxation Office (ATO) has warned that it will take action to address an increase in the number of small businesses delaying tax and superannuation payments to prop up their cash flow.

The warning comes as companies struggle in the current economy with the country seeing the highest rate of business closures in the past four years.