The tax office have identified that a large number of Australian high wealth individuals are not adhering to their tax responsibilities.
The ATO have the ability to retain data from insurance providers for certain classes of assets – including marine vessels, enthusiast motor vehicles, thoroughbred race horses, fine arts and aircraft.
Initially, the tax office was allowed to obtain this information for a period of three years, however they now intend on having this period extended to five years.
This lifestyle assets data matching program outlines particular taxpayers which will require careful watch when submitting their tax returns. Ultimately, it allows the ATO to identify compliance issues with income tax, CGT, FBT, GST, and superannuation obligations.
When lifestyle and assets don’t match up, it indicates that a higher income is being generated compared to what is being reported.
As a small business owner, it is possible that you have a number of assets that will be under scrutiny and careful watch from the ATO.
In order to reduce the likelihood of a stressful audit, it is important that you engage with a knowledgeable and reliable tax adviser.
Our tax champions are experienced and have a comprehensive understanding of tax law. We can ensure your tax return is maximised without any illegal claims.