In previous newsletters we have advised that the ATO is becoming quite sophisticated with data matching. Over the last couple of months, we have seen three instances where data provided to the ATO from an outside source triggered an ATO red flag that either led to an audit or a “please explain” for our clients.
In all of these instances the ATO was satisfied that both our clients and our Practice had done the right thing, and no further action was taken.
However, it is a timely reminder to ensure that you always declare the correct information – as data is now being freely shared between many sources and the ATO.
The three cases we assisted clients with related to data reported to the ATO by these organisations:
- A bank - EFTPOS terminal data compared to the income reported on a tax return led to an Income Tax review
- The Department of Transport and Main Roads - the purchase and registration of a new ‘luxury’ vehicle by a company resulted in a Fringe Benefits Tax audit
- The Office of State Revenue (OSR) – The sale of a property required a Capital Gains Tax review.
The ATO also commonly receives data from:
- Department of Immigration
- Share Registries (sales and dividends)
- Ebay (or similar)
- Sharing Economy Transactions (Uber)
- Austrac (Foreign money transfers etc)
If you have any questions about data matching in relation to your situation, give our office a call.