ATO uses Data Matching to crack down on share income, capital gains

A laptop and a folder with documents related to ATO's use of data matching to track and investigate share income and capital gains. Contact our tax accountant near you for guidance on complying with ATO regulations and minimising your tax liabilities.

The ATO in Sydney is once again expanding its data matching programme, emphasising share data. In a recent media statement, the ATO revealed its plan to comprehensively examine taxpayers’ compliance regarding the accurate reporting of income and capital gains from share sales. This endeavour entails scrutinising an extensive dataset of over 500 million records from 2014 onwards. As a result, taxpayers and individuals seeking the assistance of accountants in Sydney must ensure their share-related financial activities are appropriately disclosed and accounted for.

Data is obtained from 7 different share registries (e.g. Computershare, Linked Market Services etc.), and information collected will include (but is not limited to):

  • Full name and full address
  • Holder Identifier number
  • Purchase date and price, sale date and price
  • Quantity of shares acquired or disposed of
  • Broker ID

At the same time, the ATO will also obtain data information from ASIC, allowing them to cross-check any changes in private company shareholdings.

Currently, the ATO is treating this as an education campaign. This will change at some stage shortly to a compliance programme.

We suggest you carefully review your shareholdings and ensure any dividend income or profit or loss on sale made on your shareholdings is correctly recorded in your tax returns. If, for any reason, you believe income and capital gains from shares were not reported correctly in your tax returns, please get in touch with us immediately to determine a plan for disclosure of the omitted amounts. If you have any queries, don’t hesitate to contact your client manager.

Kreston Stanley Williamson Team

*Correct as of November 2018

Disclaimer – Kreston Stanley Williamson has produced this article to serve its clients and associates. The information contained in the article is of general comment only and is not intended to be advice on any particular matter. Before acting on any areas in this article, you must seek advice about your circumstances. Liability is limited by a scheme approved under professional standards legislation.

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