Last year, ATO data matching cross-referenced information reported in tax returns against over 600 million transactions provided to it by third parties to identify omitted income and gains, or incorrectly-claimed offsets or entitlements to exemption from surcharges.
As a result of the ATO data matching, it identified and contacted nearly 400,000 taxpayers who had apparent discrepancies in the information they reported in their tax returns.
The majority of taxpayers who made errors on their return and had to repay money didn’t wait for all pre-fill information to be available. Nine out of ten returns were adjusted as a result of the ATO data matching inquiries.
The ATO said that traditionally, it has focused on areas such as omitted interest and employment income.
However, the scope of ATO data matching is expanding to encompass a greater range of areas.
Expanded Areas of ATO Data Matching:
- capital gains tax from the disposal of shares and property;
- employment related foreign source income; and
- contractor income from payments made by government agencies.
Therefore it is important that clients are accurate with the information they provide to their Tax Agent.
Here at The Quinn Group, we have Tax Record Kits that are provided to all clients. These Tax 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.