Big Brother is watching your Tax Moves!
What it means for you!
It’s no secret that ATOs are working to monitor every move individuals and businesses make by using technology and data to match numerous and varied sources of information.
Recent announcements by the ATO and the Federal Government will increase audit activity. As announced in the Federal Budget, the government will provide $1 billion over four years from 2019-20 to the ATO to extend the operation of the Tax Avoidance Taskforce and expand the Taskforce’s programs and market coverage.
Last week, ATO deputy commissioner Deborah Jenkins announced that the tax office will launch a new black economy hotline on 1 July 2019, giving the public an opportunity to dob in businesses “offering [ing] discounts for cash.”
ATO commissioner Chris Jordan has also hinted at a $10 billion tax gap in the small business sector, significantly larger than the corporate tax gap, at $1.8 billion, and the individuals who aren’t in the business tax gap, at $8.7 billion.
On the individual front, the tax office also recently applied to the Office of the Australian Information Commissioner (OAIC) to hold on to lifestyle assets data from insurers for a further two years. The ATO has already stated that it will look at people whose lifestyle appears lavish, but the declared income in their tax return doesn’t reflect that. They’ll be collecting data from various sources, reviewing bank data, and scouring taxpayers’ social media platforms to check for posts or photos, where they can view people’s lifestyles and match that back to their reported taxable income.
For part two, click here.
