Facebook is letting people hide their money to avoid paying tax – and authorities around the world are struggling to play catch up.
Two Australian-based researchers say it’s an “international phenomena” across multiple social media platforms, and it has stumped government agencies like the Australian Taxation Office (ATO) – even those with sophisticated tax-detection systems.
The loophole means nations around the world are losing millions of dollars in revenue that could otherwise be pumped back into the community.
Selling an old dog kennel or last season’s clothing on Facebook Marketplace could be considered the online equivalent of a garage sale or a modern-day Trading Post.
But instead of receiving a few coins in a bucket, or cash in hand, the profit is transferred through Facebook Pay (yet to be introduced into Australia) into the seller’s account within 24 hours.
All from the comfort of home and with the touch of an iPhone button.
Sounds good, right? Well, not for everyone, apparently.
Virtual tax havens: How social media platforms are helping tax dodgers hide their loot
