VIC No Superannuation and Tax Return - Any Recourse?

[truthisone]

Greetings folks,

I think I have been scammed and taken for a little ride.

The story:

I was working for this guy for approx. 9 months as a registered Australian Apprentice. During that time, my employer was paying me cash-less tax. As if they were withholding the tax. They told me this was best for them to do and told me they would pay me out "later", advising me they were keeping track. Sounds fishy? Read on...

On several occasions, I kicked up a fuss and strictly asked to be paid into my account. This worked a handful of times but nothing more. Instead I was given the excuse that "they didn't have time to deposit it" and hand me an envelope with my earnings.

I would ask "what about tax, super, etc?"

"Yes, yes of course we are keeping track"

Naively, I trusted these words trusting that the signed employment contract was my security/insurance against him doing the dodgy.

I live overseas now and this he knew was coming too, and even though I requested for my tax return and superannuation in various ways (email, phone and in person), nothing has happened. Believe me, I have tried every way and keep getting told "it's coming in a month" - now I get nothing.

One suggestion I was given by the ATO was to submit a tax return given on how much I earned whilst working there, even though I never received not one single pay slip. Safe idea?

I'm not sure where I stand now and which way to take this. It's caused me much distress already. I appreciate all help and support given by anyone who can comment and direct in some form or another. I hope there is someone out there that may be able to offer some suggestions.

Many thanks in advance ☻

FACTS:

☻ Registered Australian Apprentice with signed contract between myself, ex-employer and a witness.

☻ Unpaid Super claim made in their name to ATO

☹ Never received a pay slip or quarterly super payouts

☹ Found out long afterwards through ABN lookup tool that they are "not currently registered for GST".

 

[kimsland]

One suggestion I was given by the ATO was to submit a tax return given on how much I earned whilst working there, even though I never received not one single pay slip. Safe idea?
,,,,,,
☻ Unpaid Super claim made in their name to ATO

Yes, that is the correct way to handle your own tax return. Add up all the money you earned, as best as to your ability, then submit it. There is no other better way.

Next, Super hey. Well Super is a strange thing, your employer does not have to make 'weekly' or monthly contributions to your Super fund. They can make quarterly and with enough arguing and debating, yearly submission of all your Super (I'd say around $4000 a year to a Super fund that cannot be touched by you until you are over the hill).

You forgot to say how long were you there for? 20 years? 1 Year? A month!

The tax idea thingy will work.

The Super is handled by a different area and you should expect 1 to 2 years wait, where you'll receive a letter they have decided to close the case through lack of evidence. Therefore I doubt you'll get that.

 

[truthisone]

Thanks @kimsland I very much appreciate that you have taken the time to respond. I will consider your words with due though re: submitting a tax return.

May I ask you, is there any risk to me by doing that? Can the tax dept turn around on me for not saying something earlier etc, etc?

I was working for this firm just short of one year.

The Super is handled by a different area and you should expect 1 to 2 years wait, where you'll receive a letter they have decided to close the case through lack of evidence. Therefore I doubt you'll get that.

Do you know or have any tips on how to provide 'more evidence' to preempt and prevent the scenario from happening?

Many thanks once again.

Cheers

 

[kimsland]

Thanks @kimsland I very much appreciate that you have taken the time to respond. I will consider your words with due though re: submitting a tax return.

May I ask you, Is there any risk to me by doing that? Can the tax dept turn around on me for not saying something earlier etc, etc?

I was working for this firm just short of one year.



Do you know or have any tips on how to provide 'more evidence' to preempt and prevent the scenario from happening?

Many thanks once again. Cheers

Hi thanks for your reply.

In line with your questions.

The tax department will be happy to see you have submitted the financial year total income.
I am aware that many people take up to 3 years in submitting this info, and although you can be fined for late tax returns, in all the people I've known (including myself) this hasn't happened.

Once a tax agent said to me that if the tax department owes you and you are late in submitting, then they usually don't chase you; but if you owe them a lot (say over 3000 or more) then they will. This is not of course the law of the matter, just the reality I have seen over all these years.

The best evidence is bank statements. Although your employer paid you in cash at times, I feel these amounts can be shown as an average amount. In other words, if you have say 3 months of confirmed bank deposits and the rest is without statement, you can justifiably average the 3 months over the term of the employment (if your hours and position remained similar).

To avoid this scenario in future either you or your employer should bank your entire wage when received, and then withdraw from it

 

[truthisone]

Thank you again for taking the time to inform me and sharing with me more info on this subject.

The tax department will be happy to see you have submitted the financial year total income.

Good to know. However do you know what happens once they realize that entity has not paid for the person who has submitted in their name. My only guess is a case would opened and suspected? Pardon me, I have almost no idea ?

To avoid this scenario in future either you or your employer should bank your entire wage when received, and then withdraw from it

Good to know as this was the case for me. It went straight into the bank soon after it was handed to me. I guess my gut feeling was at the time for doing so. Despite the odd times they paid it into my account, Statements would reflect that I myself deposited to the same amount into the bank almost soon after being paid.

Cheers again!