Last weekend I prepared a series of posts outlining some of the ATO Data Matching programs in the mix at the moment. Unfortunately, the blog database had to be restored and I lost most of that content. So this is take two! Let’s go again….
Each morning for the next seven days we will outline some of the details relating to one of the Tax Office’s current data matching programs.
Today we’ll be starting with a look at how the ATO is using data matching to catch out business owners pocketing cash and not reporting all of their income.
Credit and Debit Card Data Matching Program
The ATO will collect information about the debit and credit card sales (with this type of secured card) of merchants accross various industries. The information currently being matched relates to the period 1 July 2010 to 30 June 2011 (the 2011 financial year).
It is expected that this will involve data for around 400,000 entities.
The objective is to identify non compliance with registration, reporting, lodgment and payment obligations under tax law.
In particular, the ATO is looking for those who are participating in the cash economy and potentially skimming some of their cash takings (or not reporting any at all).
The ATO have obtained data from the following banks:
- Commonwealth Bank of Australia
- St George Bank
- Westpac Banking Corporation
- Australia and New Zealand Banking Group Limited
- National Australia Bank Limited
- Bendigo and Adelaide Bank Limited
- Bank of Queensland Limited
- BWA Merchant Services Pty Ltd
- American Express Australia Ltd
- Diners Club Australia
Anyone who is running part of their business ‘off-the-books’ is encouraged to make a voluntary disclosure of any under-reported amounts.
This program was anounced in the Commonwealth Government Notices Gazette GN49.
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