If you’re based in Sydney and need professional accounting services, staying informed about the recent ATO crackdowns is crucial. With that in mind, here are several aspects that the ATO will be closely examining in the coming year, particularly for accountants in Sydney.
- Welfare recipient payments will be reviewed by accessing financial records from multiple sources. This will target over 10 million Australians to ensure they have not claimed more than they are entitled to, especially if they receive income from other sources.
- The ATO will request information from the Office of State Revenue and real estate agents to review which properties have been sold and/or rented to ensure any capital gains or income is reflected in the taxpayer’s income tax returns.
- Online sales forums (such as E-bay) will be cross-checked to review whether the profits from selling goods and materials online have been reflected in taxpayers’ income tax returns.
- Motor vehicle purchases, exceptionally high-value cars, will be reviewed to ensure that the income shown in the taxpayer’s tax return is enough to sustain a purchase of that magnitude. If it does not make sense, the ATO may start audit action.
- Credit Card records will be reviewed and checked to ensure that the income level shown in the taxpayer’s tax return is enough to meet the level of spending. The ATO can request information from the central banks, and if the spending does not make sense, the ATO may start audit action.
- The Australian Electoral Roll will be checked to identify, trace and deal with those not meeting their lodgement, reporting and payment obligations under the relevant superannuation and tax law.
- Self Managed Superannuation Funds (SMSF) will be monitored to ensure that there are no schemes put in place to:
- Access funds illegally before retirement;
- direct income from businesses or related entities into an SMSF to access the concessionally taxed status within the fund;
- arrange loans within the SMSF that don’t satisfy the strict rules that govern SMSF borrowing.
If you believe you fit into any of the above areas, be very careful to ensure you are doing the right thing, as the ATO is looking closely.
If you have any concerns concerning the above information, in your own affairs or someone you know, please don’t hesitate to contact your client manager today to discuss.
Kreston Stanley Williamson Team
*Correct as of August 2016
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.