The ATO has just announced that it is starting a new “asset” data matching protocol, and extending another CGT and rental protocol that has been running successfully for the last ten years.
Data matching on insurance taken out on certain assets owned by “wealthier” taxpayers
The ATO has advised that it is working with insurance providers to identify policy owners on a wide range of asset classes.
- enthusiast motor vehicles
- fine art
- thoroughbred horses
It said that this will provide them with a more accurate estimate of taxpayers’ wealth.
Therefore, taxpayers who have used untaxed monies to acquire such assets might be well advised to get on the front foot and disclose it to the ATO, rather than waiting for a call from the taxman.
They advise that they expect to receive 100,000 records where the different asset classes meet certain threshold amounts.
Property sales and rental income
The ATO has also advised that it is continuing its ongoing “Real property transactions 1985–2017 data matching program protocol”.
It is undertaking this program to basically ensure that taxpayers are correctly meeting taxation obligations in relation to their dealings with real property, i.e., CGT on property sales and in-come tax on rental income. For the period 20 September 1985 to 30 June 2017, data will be obtained from all State
and Territory Revenue authorities, as well as many Finance departments, and Land and Residential Tenancies authorities.
The ATO will obtain the data on:
- landlords, properties, rental income, etc., from the rental bond authorities
- taxpayer details on property valuations, sales, purchases, etc., from the revenue and land titles authorities.
Number of records
It said that, based on current data holdings, it is estimated these records will identify around 11.3 million unique individuals.