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ATO's after you if you've been a bad boy.....

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Probably just what you wanted to hear, but if you haven't been a bad boy you should be OK.......

Flashy cars, low income: ATO eyes tax-dodging red flag

Black economy participants and tax dodgers driving luxury cars will continue to come under ATO scrutiny as it looks to extend its motor vehicle data-matching program for a further three years.

The extension of the data-matching program will see the ATO continue to collect records from eight state and territory motor vehicle registries for the 2019–20, 202021 and 202122 financial years.

Registry records for around 1.5 million individuals are expected to be collected each year for any newly registered or transferred vehicles with a purchase price or market value of $10,000 or more.

According to the ATO, the records will help it “identify higher-risk taxpayers with outstanding lodgements and those with undeclared income whose asset holdings may not be proportionate to their declared financial position”.

To support its focus on the black economy, the Tax Office will also use the data as “an indicator of risk, along with other data holdings, to identify taxpayers that have purchased vehicles with values that are not commensurate with the income they have reported”.

The records will also help inform the ATO whether taxpayers that buy and sell motor vehicles are meeting their tax and super obligations, and if taxpayers are compliant with GST, fringe benefits tax, luxury car tax, fuel schemes and income tax obligations.

The ATO will also use records to scrutinise sellers, licensed dealers, fleet managers, leasing companies or representatives of these taxpayers to determine if the use of interposed proxy ownership has concealed the real accumulation of wealth.

Into its 16th year, the data-matching program will acquire a wide range of transaction details that include the vehicle make and model, engine capacity, vehicle identification number and garage address.

Details of individuals involved in the transaction, including their name, address, date of birth and ABN, will also be collected.

Data from the program will be retained for five years.

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On 23/01/2021 at 06:02, 9fan said:

AND company directors who send investors and the company bust but depart with their proceeds and payments intact, to direct elsewhere.

 ^ nothing to see here in that case perhaps?   Don't they  make sure they raided the cookie  jar  before the declaration that its empty.   Woudd they just maintain their gross pre tax income ( pass the algo sniff test) .  If they have a 100k plus car  and decent income doesnt the algo go nothing to drill  down on hear.  Or do you have faith  the boffins with some common sense add a few fields from the  ASIC database  to cross check  in the algo   ( red flag potentials where the directors names / tax file number  and  busted companies gets a hit to drill down on whereby the   paper garage doesn't match the physical one or vise versa.    Then do you add the marriage database list to see how many are registered in the partners  name with bugger all income)  (  whats the ratio of dodgy male to female directors)  whose surnames  don't  match.

Does that mean might see a few more higher end cars at auction houses with net proceeds going to offset ATO bills 

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