Have you heard about the ATO’s data matching program? If not, here are some salient points.
ATO matches external data with their own to help them ensure that individuals and businesses comply with their tax and superannuation obligations, as well as, to help detect fraud against the Commonwealth.
Besides this, ATO aims to protect honest businesses from unfair competition and make it easier for individual taxpayers by pre-filling their returns.
One of the methods is the ‘Lifestyle assets data-matching protocol’ which covers the financial years 2013/2014 to 2019/2020. Under the program, the ATO collects data on insurance policies for certain classes of assets, including marine vessels, motor vehicles, thoroughbred horses, fine art and aircraft, improve their compliance risk profiling of taxpayers and provide a holistic view of their assets and accumulated wealth.
The ATO also has specific data-matching programs in areas such as credit and debit cards, specialised payment systems, online selling, ride-sourcing, motor vehicle registries and cryptocurrency.
Data is obtained from:
- Banks and financial institutions to identify the total credit and debit card payments received by Australian businesses.
- Electronic payments made through specialised payment systems to Australian businesses.
- Online selling sites to get details of online sellers who sell goods and services to the value of $12,000 or more.
- All ride-sourcing facilitators operating in Australia and their financial institutions to identify ride-sourcing drivers.
- All the state and territory motor vehicle registering bodies to identify all motor vehicles sold, transferred or newly registered, where the transfer or market value is $10,000 or more.
- Australian cryptocurrency designated service providers (DSPs) to ensure people trading in cryptocurrency are paying the right amount of tax.
More information on Data Matching Protocols: https://www.ato.gov.au/General/Gen/Data-matching-protocols/
Disclaimer: This blog post has been simplified to cover some key points of ATO’s data matching program. This should not be construed as advice from Glint Accountants. There are many other factors to be considered and each situation is unique. Therefore, we encourage readers of this blog post to contact Glint Accountants for assistance with their specific circumstances.
Geraldine Lee is Fellow of CPA Australia and successful business owner. Contact us at Glint Accountants for assistance if you believe that you have inadvertently omitted reporting income earned in previous tax returns and would like advice on how to sort it out. We will ensure that you get it right and do our best to help you avoid penalties imposed by ATO.