I think we all seem to have forgotten that the ATO is not such a big bad ogre and if a small business owner has made a genuine error in not realising they had tax obligations they are more than willing to help them sort it out.   If the OP has not transferred the ebay ID into their name but all the monies are going through their accounts then the ATO will quite easily see who has been operating the business.   As far as GST goes - with the average value of the items the OP is selling then it is quite possible they have not reached the $75000 threshold for GST purposes.   The ATO understands that people make mistakes which is why they are more than willing to help in situations like this.

Well said Jen. It concerns me when there are well intended posts that could inadvertantly scare someone (that was otherwise willing to come forward and declare everything) become overly anxious or decide not to declare at all.

During my years undertaking audits (not for the ATO) I dealt with a lot of large multinational companies and have seen first hand the anxiety that the thought of an audit can cause at the financial controller and CEO level. I can only imagine how intimidating it can be to a small business owner that doesn't have any qualifications or experience with regards to taxation.

I haven't read the ATO's current policies regarding penalties, but can say that from my previous experience that generally speaking there are many factors taken into account when determining penalties to be applied (eg. voluntarily declaring a tax debt will attract a far lesser penalty than a situation where it is identified at audit stage that the person deliberately took measures not to pay tax). At the end of the day it is best to be up front and honest.

I agree that the ATO would much prefer to enter into a payment arrangement and collect the taxes owing to them than have someone be declared bankrupt and get nothing.

If you are still reading this post OP, please see your accountant and tell them everything (including any details regarding others that have operated your ebay ID). They are there to help you. I wish you all the best - a positive outcome and a weight lifted.