Current as of August 2016
You may have read in the media lately about ATO crackdowns. Following are some of the things that the ATO will be looking at over the next 12 months.
- Welfare recipient payments will be reviewed by accessing financial records from multiple sources. This will target over 10 million Australians to ensure that they have not claimed more than they are entitled to, especially if receiving income from other sources.
- The ATO will request information from the Office of State Revenue and real estate agents to review which properties have been sold and/or rented, to ensure any capital gains or income is reflected in taxpayer’s income tax returns.
- Online sales forums (such as E-bay) will be cross-checked to review whether the profits from the sale of goods and materials online has been reflected in taxpayer’s income tax returns.
- Motor vehicle purchases, especially high value cars, will be reviewed to ensure that the income shown in the taxpayer’s tax return is enough to sustain a purchase of that magnitude. If it does not make sense, the ATO may start audit action.
- Credit Card records will be reviewed and checked to ensure that the income level shown in the taxpayer’s tax return is enough to meet the level of spending. The ATO can request information from the major banks, and if the spending does not make sense, the ATO may start audit action.
- The Australian Electoral Roll will be checked to identify, trace and deal with those who are not meeting their lodgement, reporting and payment obligations under the relevant superannuation and tax law.
- Self Managed Superannuation Funds (SMSF) will be monitored to ensure that there are no schemes put in place to:
- access funds illegally prior to retirement;
- direct income from businesses or related entities into an SMSF to access the concessionally taxed status within the fund;
- arrange loans within the SMSF that don’t satisfy the strict rules that govern SMSF borrowing.
If you believe you fit into any of the above areas, be very careful to make sure that you are doing the right thing, as the ATO is looking closely.
If you have any concerns in relation to the above information, in your own affairs or someone you know, please don’t hesitate to contact your client manager today to discuss.
This newsletter has been produced by Stanley & Williamson as a service to its clients and associates. The information contained in the newsletter is of general comment only and is not intended to be advice on any particular matter. Before acting on any areas contained in this newsletter, it is imperative you seek specific advice relating to your particular circumstances. Liability limited by a scheme approved under Professional Standards legislation.