Information and Data Matching
During the process of overseeing tax returns, the taxation office plan to check over 640 million transactions this year to ensure income is reported correctly and claims are not overstated.
Traditionally information and data matching have been focused on omitted interest and employment income, however the ATO are now broadening their information matching to:
- capital gains tax from the disposal of shares, collectibles, precious metals and property
- foreign source income
- contractor income from payments made by government agencies.
By using data and information matching, over 500,000 taxpayers who had apparent discrepancies in information they reported in their tax returns have been contacted. Nine out of ten returns were amended as a result of ATO enquiries.
Why data is collected?
The purpose of data collection is to protect businesses doing the right thing from unfair competition from those who may be avoiding their tax obligations.
The online selling data sourced from online selling sites to:
- identify taxpayers at risk of not complying with their tax obligations for referral to the relevant area of the ATO for appropriate follow up action
- deliver products and tailored education strategies to assist taxpayers in managing their tax responsibilities.
What is done with the data?
- Online selling transactions are matched to internal data – and:
compared to information that identifies taxpayers who may have omitted income from their tax returns
- used to identify individuals and businesses with outstanding tax returns
- in some cases used to issue default assessments.
Individuals and businesses that are identified as being at risk of running part of their business off the books or in other ways not reporting all their income will be contacted by the Australian Taxation Office.