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Real estate industry

Australian Taxation Office Cracks Down on Tax Dodgers

Strategic Insights

— 1 min read

As part of a further crackdown on tax evasion, the Australian Taxation Office (ATO) has announced that it will be scrutinizing motor vehicle and property sales to identify taxpayers who may not be meeting their tax obligations. The ATO will be matching updated information from the states and territories against taxpayers' records to identify those who may be underreporting or not reporting sales of motor vehicles and properties. The crackdown aims to target businesses and individuals who may be using cash-based transactions to evade tax.

Key Takeaways:

  • The ATO will be checking motor vehicle sales that were sold, transferred, or newly registered between July 1, 2009, and June 30, 2010, with a transfer and/or market value of A$10,000 (US$9,557) or greater.
  • The ATO will be targeting businesses that sell vehicles and fail to report or underreport those sales, as well as individuals who may not have sufficient income to support the purchase of a vehicle.
  • The ATO will also be looking at property title transfers between July 1, 1999, and June 30, 2010, to ensure that taxpayers are correctly accounting for their property transactions.
  • The historical data collection for properties over an 11-year period aims to establish a sales history of individual properties since the advent of capital gains tax legislation on September 19, 1985.
  • Tax Commissioner Michael D'Ascenzo stated that the net is now being cast much wider, and the ATO will be checking a broader range of motor vehicle sales, not just luxury cars.

Statistics:

  • A$10,000 (US$9,557) is the minimum transfer and/or market value of a motor vehicle that will be scrutinized by the ATO.
  • 2009-2010 is the time period for motor vehicle sales when the ATO will be checking vehicles that were sold, transferred, or newly registered.
  • 1999-2010 is the time period for property title transfers when the ATO will be checking to ensure taxpayers are correctly accounting for their property transactions.
  • 1985 is the year when capital gains tax legislation was first introduced in Australia.

Sources:

  • "ATO targets tax dodgers in new data matching program." Asia Pulse, September 23.
  • Statement by Tax Commissioner Michael D'Ascenzo (Wednesday, no date mentioned).

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