Institute of Certified Bookkeepers

Cash-Only Business Caught Avoiding GST

One of the owners of a cash-only takeaway chicken shop had been previously audited twice for another chicken shop, involving cash wages and inadequate record keeping.

The owners were claiming a large portion of GST-free sales from the sale of cold, uncooked chickens. When we tried purchasing an uncooked chicken, we were told that it was unavailable as the shop is a takeaway.

Our audit revealed they had understated their sales by around $330,000 and were paying cash wages. The owners had to pay back $103,371 in GST and also $77,528 in penalties.


  • 29th June, 2018