Making over $10,000 on eBay?
The Australian Tax Office (ATO) has announced that they will be obtaining the online selling database of eBay customers who sold goods or services in excess of $10,000 between 1 July 2014 to 30 June 2015. It is estimated that 15,000 to 25,000 individuals may be identified by this data matching initiative.
Following a review of all online selling sites in Australia and in consideration with the ATO’s guidelines it has been determined that seller information will be obtained from eBay Australia and New Zealand Pty Ltd. The ATO will continue to monitor the online selling market to determine any further entities that meet their collection criteria and will collect data from these entities as appropriate.
The data collection process will allow the ATO to identify individuals or businesses that are not meeting their registration, reporting, lodgement and/or payment obligations. Upon recognition Taxpayers will be notified and allowed 28 days to verify the information obtained before any action is taken.
Data matching programs undertaken by the ATO have been in effect since the 2007-08 financial year. These programs have seen over 70% of accounts matched with a high degree of confidence. As a result over 8,000 individuals have been contacted and total tax and penalties in excess of $4.5 million have been imposed.
Therefore, it is essential that all taxpayers ensure they declare all their income when completing their tax returns.
Here at The Quinn Group, we have Tax Record Kits that are provided to all clients. These Tax Record Kits are often used by clients as a checklist to ensure income and tax deductible expenses are not overlooked.
If you need help lodging your tax return, please contact The Quinn Group on (02) 9223 9166 or submit an online enquiry.