Taxation Law and the Sharing Economy

Running head: Taxation Law
Taxation Law
Name of the Student
Name of the University
Author Note

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Taxation Law
Introduction
The concept of shared economy is not having a proper definition as it is not being used so it
cannot be defined easily as it have got several term link with it and it go in the activity such
as sharing as well as gig economy. AS per the report published by the black economy
taskforce it has been stressed upon the harm which the black economy do to the society and
the business houses (ABC News 2019). It also effect the individual who always pay the real
amount tax in the prescribed time so this also damage the tax integrity and the welfare system
which help to generate an unbalanced playing ground for most of the small business which
are following the right stuff in regards with the tax implication of the business. It can be seen
that sharing economy have grown rapidly from the last few years which help in aids creation
and increase in the job and help the customers to get much number of choices (Australian
Financial Review 2019). As per the growth which is been seen in the sharing economy it can
be assumed that there can be increase in the risk that the seller might not pay the full amount
of tax which is should be pay by him to the authority. As there are so many weakness in the
tax structure that it gives benefits to the consumers and the business form so that it will be
also be unfair to the person who are doing the right things as per the tax structure (Cohen &
Kietzmann 2014)..
So to overcome this problem the ATO had formed an agreement with major platforms so that
it will able to get the required information about the taxpayers so gathering the information.
As the ATO is collecting the required information to the Uber driver so that they can
available to know and understand the tax structure and also help them to know their
obligation (Ert, Fleischer & Magen 2016). This will help them to get the comprehensive
regimes as it will increase the compliance as per the area.

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Taxation Law
Arrangement as per the current environment and also help them to promote the
compliance as per the Australian Income Tax Law:
As per the present scenario it can be seen that there is very less information about the taxation
related matter in the sharing economy. So this make ATO confuse whether the seller are
willingly not able to pay the required tax and due to lack of the knowledge they are not
paying the required amount of the tax. So after making a market survey in the economy they
able to know that due to lack of the knowledge about the taxation policy they are unable to
pay the required amount of the tax (Fang, Ye & Law 2016). As they are unaware about the
tax so that is the reason they are not able to pay the required amount of the tax.
The reason which is been found about the same is that due to the lack of employee
relationship it is been the reason of lack of knowledge as they work as independent contractor
or as self-employment principles so this will make them away from the current rule of
reporting (Guttentag 2015). This show that the tax will not be charged upon the income
which is been earned by the sharing economy as well as it may not have the responsibility
regarding the reporting of the information which are been made upon the individual in
regards of the payments made to the ATO.
The economy which is been found in the sharing economy is a very common and not formal
nature so this make them realize that the sellers may not able to understand that which
activities will able to affect the tax obligation upon and due to this it may not pay the required
amount of the tax which it should have pay in regards of the activity (Hamari, Sjöklint &
Ukkonen 2016).So as the seller do this kind of activity for a short span of time so it make him
realize that the it is not bound to pay any tax upon the activity done by him.
As per the above mentioned points ATO have controlled the information in related to the
income of seller in the sharing economy. As not having the knowledge about the same cannot