The ATO has advised that last year, it 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.
It 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 its inquiries.
The ATO said that traditionally, it has focused on areas such as omitted interest and employment income.
However it is expanding its data matching to encompass a greater range of areas.
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 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.