CURRENT AS AT 22 July 2019
As is common for this time of year the ATO has let us know what areas they are targeting this year. The first area is a common area for ATO attention and one we have warned you about in the past – rental property dodgy deductions.
The ATO will double the number of audits of rental property deductions with particular attention being paid to
- Interest claims to ensure the loan was used to purchase the property, not just where the loan is secured by the property, but was used for something else
- Repairs so as to ensure they are not capital costs or initial repairs
- Deductions on properties which are not rented out at full market rent as they are leased to friends or family
- Record keeping to ensure there is proof of all deductions.
The next target is Cryptocurrency! The Commissioner has given notice that it will collect data from cryptocurrency designated service providers, under notice, to identify individuals or businesses who have, or may be engaged, in buying, selling or transferring cryptocurrency during 2014/15 to 2019/20 financial years. The purpose of the data matching is to ensure that taxpayers are correctly meeting their reporting, taxation and superannuation responsibilities in relation to those transactions. This includes registration, lodgement, reporting and payment responsibilities.
If you have any concerns in this regard don’t hesitate to contact your S & W client manager.
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