The ATO is now focusing on share data and has further extended its data matching program.
The ATO will use the information to identify taxpayers who have not properly reported the sale or transfer of shares as income or capital gains in their income tax returns.
Over 500 million records will be obtained from ASIC, sales and purchase data will be obtained from share registry service providers and compared with information included in income tax returns. The ATO will match this data against ATO records and to identify taxpayers that may not be meeting their registration, reporting, lodgement and/or payment obligations.
This data matching program will allow the ATO to identify taxpayers who are not fully complying with their obligations, as well as those that may be operating outside the taxation and superannuation systems. It will also reduce the likelihood of the ATO unnecessarily contacting taxpayers who are complying with their taxation obligations.
What sort of data will be collected?
- Full name
- Entity name
- Purchase date and price
- Sale date and price
- Quantities of shares acquired or disposed of
The ATO has worked extensively with data providers and is confident the data will be of high quality as it has been in the past. The data will be supplied in accordance with reporting specifications including record layout, file and data format for each record.
Where ATO detect a discrepancy that requires verification the taxpayer will be provided with the opportunity to verify the accuracy of the information obtained by the ATO
Taxpayers will be given at least 28 days to respond before administrative action is taken.
You should contact The Quinn Group as soon as possible if you receive such correspondence from the ATO. Please contact Quinn Consultants by clicking here to submit an online enquiry form or call us on 1300 QUINNS (1300 784 667) or on +61 2 9223 9166 to arrange an appointment.