The ATO is planning to scrutinize every property sale in the last decade, looking for people who have incorrectly reported their income.
The ATO is taking its data matching processes to the next level, and recently announced that it will ask state and territory authorities for data that will allow it to scrutinise every property sold in the last 11 years for unpaid capital gains tax, income tax and GST.
In addition, the ATO will also ask government authorities for data on the every vehicle sale, transfer or registration over the last year where the vehicle involved had a market value of more than $10,000.
“We’re looking to identify businesses that sell vehicles and fail to report or under report those sales,” Tax Commissioner Michael D’Ascenzo said in a statement.
But they will look at the property sector in even more detail. The ATO will ask state and territory authorities for details of every property title transfer between July 1, 1999 and June 30, 2010 and match this data against taxpayer records to pinpoint tax evaders. ”The information will help us identify people who may have incorrectly reported or not included capital gains tax, income or GST in their income tax and business activity statements,” D’Ascenzo said.
This year, the tax plans to match over 220 million records.
The lesson for property investors is to keep great accounting records. There are lots of legal tax deductions – you don’t need to diddle the tax man.
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