Tax Office Now watching Our Car Buying etc !!!!

[csv8]

NEXT time you buy a car, go to the bank or splurge out at the shops, the Australian Tax Office will be watching what you spend.

In addition to checking Department of Immigration and Centrelink records, the ATO is now accessing records from insurance companies, banks, credit and debit card issuers, motor registries and other private businesses to see how much money you have to splash around.

All of the 2.7 million Australians who bought or sold a car worth more than $10,000 last financial year are currently being scrutinised.

Hardware store purchases are being used to catch out tradespeople and contractors.

Workcover records of 20,000 taxpayers are being checked and 50,000 lawyers will also have their earnings scrutinised from reports received from their state-based professional associations.



The ATO also has cafes and pizzerias in their sights, checking the books of cheese and coffee wholesalers to identify businesses that might be skimming some of their profits or taking home supplies.
People who buy and sell on eBay and other online marketplaces are also being checked.

An ATO spokeswoman told The Sunday Mail it was the start of an expansion of the tax office's data-matching and compliance program.

"Over the past 18 months the ATO has obtained data for matching from coffee suppliers, marine insurers, online selling sites, building materials suppliers, professional associations of the legal profession, Workcover, motor registries, credit and debit card providers, share registries and Centrelink (Family Tax Benefit payments) among others," she said.

Roger Timms, head of taxation and superannuation at Taxpayers Australia, said all financial transactions of more than $10,000 were reported to a government agency called AUSTRAC, and that data could be matched against reported taxable income.

"Data-matching targets business and contractors, but PAYG taxpayers are being caught up in this net as well," he said.

"For instance, if you bought an old car with the intention of doing it up and selling it later for a profit, you could generate a capital gains tax liability," he said.

"Or if you claim motor vehicle expenses on your tax return, that could trigger inquiries from the tax office to your employer."

In addition, credit and debit card matching will target the sales data of 400,000 small businesses by accessing records from seven banks and American Express.

Once the tax office has established an apparent problem, like the purchase of an expensive boat or overseas holiday by a taxpayer with a very low reported income, it can then make further inquiries.

Christie Lewis, practice manager at Alan Lewis Accountants, said couples claiming the dependent spouse tax offset should also be careful.

"The ATO will collect information from Centrelink of taxpayers who were eligible for Family Tax Benefit part B for the financial years 2009, 2010 and 2011 or who received parental leave pay," she said.

"If your spouse received these payments, you would not be eligible to claim the offset. Beware, big brother is watching."
http://www.couriermail.com.au/news/n...-1226288318516

[Bucknaked]

Maybe we should all just have our salary's paid straight to the Government, and they can just issue us with food stamps. They really want everything you earn, so maybe it's easier to just give it to them up front.

[xisled]

Unless you are doing something dodgy it will not be hard where you got the money from.

[atec77]

Originally Posted by xisled

Unless you are doing something dodgy it will not be hard where you got the money from.

Problem is and has been for decades dodgy is ill defined and the goal posts run all over the field making definition near impossible

[Stefan]

Originally Posted by csv8

"For instance, if you bought an old car with the intention of doing it up and selling it later for a profit, you could generate a capital gains tax liability," he said.

This will be great, I will happily pay tax on the money I make from selling cars....I assume I will be able to claim every cent I spend on my GTs as a Tax Deduction including part of the mortgage as they need to be garaged. Bring it on.

[Cúl-Báire]

While I don't doubt the government has the capacity to collect this information, I seriously doubt their ability to be able to impliment something like this. I mean really, when was the last time government departments/agencies actually communicated with each other?...

[Franco Cozzo]

Originally Posted by Cúl-Báire

While I don't doubt the government has the capacity to collect this information, I seriously doubt their ability to be able to impliment something like this. I mean really, when was the last time government departments/agencies actually communicated with each other?...

Centrelink, ATO and a bunch of other government organisations all share information and access to each others database on request.

[Geez Louise]

Seriously this is nothing new. The ATO has had access to do this for some time for goods purchased over the value of 10k.

What they need to be focusing on, is having your Super contributions checked and the ability to check Super funds databases. Not all can be cross matched...perhaps down the line they will be. Can't come soon enough if you ask me!

My 2c!

[Cúl-Báire]

Originally Posted by Big Damo

Centrelink, ATO and a bunch of other government organisations all share information and access to each others database on request.

Yet the AEC sends me a fine for not voting in the state election, in a state I haven't lived in for over two years, the DOT tells me I don't have a license even though I carry an open Australian drivers license, and the ATO sends a letter to an old address about my 2008 tax return even though I've lodge 2 tax returns at my current address...

I am sure they do communicate, but I can imagine information travelling from Party "A" to Party "B" involves a bucket load of bureaucratic ******** designed to keep thousands of public servents employed.

[XB GS 351 Coupe]

Great idea in my opinion, hopefully they will be speaking to 20-25 year old ethnic kids that have never worked a day, are collecting centre link, live in a housing commission unit in Villawood yet still manage to somehow drive an AMG Merc with 5K worth of rims.

Originally Posted by Stefan

This will be great, I will happily pay tax on the money I make from selling cars....I assume I will be able to claim every cent I spend on my GTs as a Tax Deduction including part of the mortgage as they need to be garaged. Bring it on.

Count me in on that one as well, I don't think I would be paying any tax if that was the case

[Ride]

Originally Posted by Bucknaked

Maybe we should all just have our salary's paid straight to the Government, and they can just issue us with food stamps. They really want everything you earn, so maybe it's easier to just give it to them up front.

Sounds a bit like communism if you ask me ...

[gtxb67]

Originally Posted by Cúl-Báire

I am sure they do communicate, but I can imagine information travelling from Party "A" to Party "B" involves a bucket load of bureaucratic ******** designed to keep thousands of public servents employed.

they are more than efficient when it comes to taking money off you - the only mistakes they make then are taking too much
once they have charged too much, they then go back to being shy within their departments



regarding the topic, the only thing new is the technology that allows them to follow your trail much more closely

[pottery beige]

joolia goolia panic stations screw tax payer time....

[nstg8a]

cash is king.... lets see them trace that.

[Franco Cozzo]

Originally Posted by Cúl-Báire

Yet the AEC sends me a fine for not voting in the state election, in a state I haven't lived in for over two years, the DOT tells me I don't have a license even though I carry an open Australian drivers license, and the ATO sends a letter to an old address about my 2008 tax return even though I've lodge 2 tax returns at my current address...

I am sure they do communicate, but I can imagine information travelling from Party "A" to Party "B" involves a bucket load of bureaucratic ******** designed to keep thousands of public servents employed.

You pretty much summed up the whole system, the old man is a public servant, its all a big game of politics, rather than actual work.

Originally Posted by nstg8a

cash is king.... lets see them trace that.

When they see that you have a $50,000 car, a house and no declared income they'll come a knockin'

[Spudz27]

My tfn was already given to my bank when I signed up, so I figured they must check from time to time. Also they communicate efectively when it comes to taking money. My sister is a student and the very day her passport was scanned leaving aus for a trip to nz her payments were ceased until she logged on to centrelink. I must say it is getting harder and harder to be free in this country.

[The Yeti]

well I'm screwed, I used well over 10k Cash of my redundancy to buy my wifes 38

And few months ago I paid the plumber 10K + for the new septic

[Scott]

Originally Posted by csv8

Workcover records of 20,000 taxpayers are being checked and 50,000 lawyers will also have their earnings scrutinised from reports received from their state-based professional associations.

Don't reckon.

[G6ET8U]

Originally Posted by Bucknaked

Maybe we should all just have our salary's paid straight to the Government, and they can just issue us with food stamps. They really want everything you earn, so maybe it's easier to just give it to them up front.

I lol'd at this... simply because I need car mod stamps too...

How do I get car mod stamps?

I'm single so right now I don't need permisson for anything I do. If I need permission then I'll be looking for car mod stamps

Jack

[cupic]

Some One should remind them that they(Govt and Dept's) work on our behalf :o

[cosworthfreak]

Originally Posted by Stefan

This will be great, I will happily pay tax on the money I make from selling cars....I assume I will be able to claim every cent I spend on my GTs as a Tax Deduction including part of the mortgage as they need to be garaged. Bring it on.

Exactly - storage, tools (incl. hoist), internet and phone, electricity for the shed/workshop, running costs for the ute (picking up parts & towing to and from various shops for work), etc.

Keep your receipts!

[cheap]

It was explained to me, that all cash transactions for new Harley's are reported to some government dept...

[davenl5l]

yep big brother is watching

[Miss_XR6]

I thought if you were paynig anything with $10k or more in cash you had a sign a dec of where you got it from if buying from a car yard ect

I could be wrong though

[charles_wif_xf]

Originally Posted by cupic

Some One should remind them that they(Govt and Dept's) work on our behalf :o

They need more than a reminder cupic...

The system is failing Australians epically; it is however, working to perfection for Govco and its shareholders...

[Andy777]

big brother has been watching for a while, I am an accountant and i have had 2 clients picked up on in recent years for income declared and cars purchased

[Geez Louise]

I think it is interesting to read some of the comments in here. "Oh no! I better hide all that cash I made and not purchase my new car, otherwise the ATO are going to get me!"

Let's look at the bigger picture here. Out of the 5000 or so employees at the ATO, there would be a small section...100 people or so Australia wide, who will have access to the cross matching, data checking system. With all the red tape and hoops you have to go through to even get access to the system in the first place, the introduction and what happens afterwards will be a long drawn out process and then secondly to act on what you have found then takes more and more redtape and paper and the process will take months! It won't just pick out a name and blammo...instant audit on your taxes. There will be a long lengthy process where they will look at other info first such as past tax returns.

So what does this mean to average Joe Public? Nothing! To me this new system sounds like the government is trying to find where monies from illegal gains is being spent.

Anyone else who has a mattress full of money, perhaps has something to worry about if they go and buy a car or house CASH! but if you can prove you have earnt every cent....Nothing to worry about.

Cheers
Col

[Kynan]

So all the costs associated with my car are tax deductible..? Sounds only fair

[charles_wif_xf]

Originally Posted by Geez Louise

Anyone else who has a mattress full of money, perhaps has something to worry about if they go and buy a car or house CASH! but if you can prove you have earnt every cent....Nothing to worry about.

Cheers
Col

Guilty until proven innocent...

[GT 160]

My old man is a builder and he was told by his accountant that the ATO are going after tradies big time this year.

And when a sub-contract fitter at work buys a $30K Harley as a "promotional vehicle" it's not hard to see why.