ATO uses Data Matching to crack down on share income, capital gains

The ATO is once again extending its data matching program, this time focusing on share data. In a recent media release the ATO announced that it would start the task of checking if taxpayers were properly disclosing income and capital gains on sale of shares. This means data matching over 500 million records, dating back to 2014.

Data is obtained from 7 different share registries (e.g. Computershare, Linked Market Services etc.) and information collected will include (but is not limited to):

  • Full name and full address
  • Holder Identifier number
  • Purchase date and price, sale date and price
  • Quantity of shares acquired or disposed of
  • Broker ID

At the same time, the ATO will also be obtaining data information from ASIC, which will allow them to cross check any changes in private company shareholdings.

Currently the ATO is treating this as an education campaign. This will change at some stage in the near future to a compliance program.

We suggest you carefully review your share holdings and ensure any dividend income or profit or loss on sale, made on your shareholdings, was correctly recorded in your tax returns. If for any reason you believe income and capital gains from shares was not reported correctly in your tax returns, please contact us immediately to determine a plan for disclosure of the omitted amounts. If you have any queries don’t hesitate to contact your client manager.