ABSTRACT
This chapter begins with the distinctive feature of the New Tax System – the Australian Business Number, and a brief discussion on a general classification of economic activities, which to a varying degree, create problems for the government when devising strategies to reduce the size of the underground economy. It explains the progress made by the government and the Australian Taxation Office in response to the recommendations from the Cash Economy Task Force. As part of the Cash Economy initiative the Australian Taxation Office (ATO) introduced real time reviews in a number of industries including the building/construction and the restaurant/cafe industries. In particular the Cash Economy Taskforce recommended that the ATO better understands these influences in order to develop a systematic approach to tackling taxpayer non-compliance. The Task Force adapted the work of Ayres and Braithwaite on strategies for regulation and Braithwaite on trust norms to develop a compliance model to complement the ATO's Taxpayer's charter.
