TopicTax reform remains an ongoing topic of debate in Australia. In October 2017, the Black Economy Taskforce Final Report was released. The report, and related links, can be accessed through the...

Executive Summary
Black Economy and Shared Economy are the topics of hot discussion these days. Black economy refers to all activities used for tax evasion, so has a negative effect on the economy. Shared economy on the other hand bring positive effect by proper utilizing under utilized assets. Uber in Australia comes under the definition of the shared economy business model, whereas Transdev is the old public transport company operating in Australia.There a complete difference in the business operations of the two entities operating in the same industry.Uber comes under the definition of Ride-sharing services in Australia. So, the taxi driver is viewed as a contractor instead of employee and he has to pay GST on all fares despite of his income and also has to file income tax return and show income from ride-sharing as business income. However, he can claim that part of expenses which is done for purpose of business. Transdev is a separate legal entity. Corporate tax and other taxes would be applicable to it as applicable to other entities. Deductions and input credit to taxi driver is permissible to Uber taxi driver upon the fulfillment of certain conditions like availability BAR (Business activity Statement) whereas company has to fulfill requirements of proper records of all invoices for purpose of GST. In short, Taxi driver would be assessed as an individual and Transdev as Corporate entity. The difference in status bring out differences in taxation like different rate applicable, different deductions applicable, different conditions applicable for claiming deductions and input gst. Due to difference status and difference in business operations of both business models, there would be huge difference in the tax consequences.
Table of Contents
    Sr. No.
    Topic
    Page No.
    1.
    Introduction
    1
    2.
    Black Economy
    1
    3.
    Sharing Economy
    1-2
    4.
    Uber In Australia
    3
     4.1
    Brief History
    3
     4.2
     Uber In Australia
    3
     4.3
     Operations of Uber
    3
     4.4
     Uber Business Model Canvas
    4
     4.5
     Uber Revenue Generation Model
    4
     4.6
     Growth Model
    5
    5.
    Transdev In Australia
    5
     5.1
    Brief History
    5
    5.2
    The Board of Directors
    5
    5.3
    Operations of Transdev Network
    6
    6.
    Differences Between the businesses that may affect taxation outcomes
    6-8
    7.
    Consequences of Taxes outcomes on both businesses
    8
    8.
    Conclusion
    9
    10.
    References
    10
Introduction: Black Economy and Sharing Economy have become topic of discussion now a days. Sharing Economy business models whereas showing positive results by properly utilizing underutilized assets of an economy, but on the other hand the black economy business models showing negative results by tax evasion and other unethical activeness. Shared economy is the result of revolution in the technology, which has brought new and innovative business models in the world. Black Economy is the result of unethical issues like corruption and money laundering where people and business houses forget about the ethical responsibilities and evade tax by using unethical methods.
1. (A) What Is Black Economy?
The term ‘Black money’ is used to refer to all the activities by which people of an economy hide information from the tax authorities with the purpose of tax evasion.
The three characteristics of black economy:
Firstly some aspects are illegal.
Second cash is used to avoid detection by law officials. In 2018, an Australian study found that $72 billion of illegal activities used Bit coin.
Third, it uses money laundering to legitimate payment transactions.
Black economy is not only affecting taxation system of an economy. It is a multi-phased phenomenon which affects the workplace relations, welfare, financial and migrations systems.
It includes following activities:
Dishonest businesses not paying tax properly
Employers not paying proper wages to employees what that are entitled to
Criminals that are operating business outside of rules and regulations
Under reporting and not reporting of income for evasion of tax.
Receiving and payment of wages for work in cash
Money Laundering
Counterfeit goods (inferior quality products that are sold under another company's trademark)
Identity fraud
GST and other frauds
Sham contracting (presenting an employee as a contractor)
Illegal phoenix (termination and re stating a business to avoid obligations)
The kind of people who are supposed to involved in black economy mostly includes (a) self employed business people of all kind (b) odd job persons e.g. gardeners (c) domestic help. The income on these is not deducted at source and at the end they forget to declare income and evade tax.
(B) What is Sharing Economy?
Sharing economy refers to economy which focus on sharing of underutilized assets with the purpose of increasing efficiency and sustainability. It means ‘what is mine is yours, but for a fee’. Sharing economy allows individuals and business houses to earn money from the unused assets.
In the collaborative economy it’s not the idea of sharing that’s new.What’s different now is the introduction of technology into the concept. ( H.O. Maycotte, Umbel)
The main characteristics of sharing economy are:
· Access instead of ownership: the person paying rent or fee only get access to use the asset but not the ownership of the asset.
· A platform: A platform that brings together the owners and seekers of assets and do all processing between them.
· No ownership of assets by platform: The platform does not possess any assets. For example, Airbnb does not have any single room.
Examples of Sharing Economy:
Peer to Peer Lending: It allows individuals to borrow or lend money on the basis of...