ATO now targeting: Motor Vehicle Data Matching

Written on the 25 June 2013 by Macmillans Waller Fry - Accountants

The ATO plans to collect motor vehicle information from state and territory authorities and to match taxpayer records and identify those who participate or operate in the cash economy. More specifically, individuals who do not declare all of their income or are deliberately avoiding their tax obligations.

The ATO has announced plans to target individuals and businesses that have purchased or acquired a vehicle where the transfer and/or market value is $10,000 or greater in the 2011 – 12 and 2012 – 13 financial year.

The ATO uses motor vehicle data to:

- Identify those whose expenditure is in excess of their reported income
- Identify businesses who sell vehicles and either under report or do not report those sales
- Develop strategies to improve taxpayer education and audit activities

If you are unsure of your tax obligations when it comes to selling or buying a motor vehicle, please do not hesitate to contact Macmillans Waller Fry – Accountants on 02 49335355.