how are we taxed

[pandaviet]

I'm planning to open a website with possible income from Adsense.
I don't know if I would have to register as Pty Ltd and declare for income tax. I'm in australia.
How does tax office know about how much I earn by operating my website, as all of the money I get will be from Paypal.
If I only earn <10000 AUD/year, do I still have to pay tax for it?
Ta,

[Morgenhund]

Do not know particularly for Austrlia. In most countries, you should declare your income and pay taxes from it.

If you will receive your funds from PayPal, I suppose there will be no easy way for your tax office to know how much your real income is.

In most countries, there are some different philosofies for this case.
1. Declare all, pay all the taxes (honest way)
2. Declare some moderate amount (but not everything), pay some taxes (the way of wise)
3. Declare nothing, do not pay taxes from this income (may cause some problems in future).