A recent cash ban for scrap metals is part of the NSW Government’s strict stance against tax evasion and the sale of stolen cars. While the majority of the scrap metal industry operates in a legally, like any other industry, there were some dodgy scrap metal buyers involved in the buying of stolen cars for cash. Since such stolen vehicles where wrecked and recycled ASAP, tracking them became almost impossible. Adding to the problem was the fact that cash payments for scrap metals meant unregistered scrap metal dealers were evading tax, turning a profit without paying their dues in taxes.
Such illegal practices have forced the authorities to take a strong stand, abolishing cash payments for scrap metals. While better regulations are always welcome, the cash ban has not been met with much enthusiasm, as sellers are unhappy that they can no longer enjoy the convenience of getting Instant Cash for Cars.
The most important restriction of the Scrap Metal Industry Bill is that cash is no longer a legal payment method for scrap cars. This includes cash cheques. By imposing this restriction on the companies dealing in scrap cars, the risk of getting quick cash and selling stolen goods is greatly reduced. Any company found guilty of paying their customers in cash would be charged with 100 penalty units.
The bill also clearly states that cash for car dealers are not allowed to follow through any dealings unless they are lawfully registered and own the certificate of registration issued to them by the Commissioner of Police. This certificate is only issued if the registration information is lawful and meets all the requirements specified.
The NSW Police have now also been allowed to patrol the premises of these companies whenever they wish without any warrant. They may arrest any personnel involved in illegal activities based on proper proof.
So, now that the cash ban is in effect, scrap car sellers can look forward to receiving payments through EFTPOS.
Cash Scrap Cars can provide you with an easy way to sell your scrap cars. To avail, our services give us a call on 0432 555 143 or drop us an email.
