ATO expands data matching to building industry

News /
2 March 2012
ATO expands data matching to building industry

The ATO has recently announced that it will expand its data matching program to the building industry in 2012.

Data matching is a key program the ATO uses to identify taxpayers who are either not lodging tax returns or who are not reporting all their income.

A variety of sources will be used to collect information including:

  • complaints & licensing information from New South Wales Fair Trading, Queensland Building Services Authority & Government of South Australia, Consumer and Business Services
  • purchase information from building industry suppliers.

The ATO has obtained details of individuals & businesses that hold a trade account with purchases of between $10,000 and $3 million in the 2009-10 financial year from a major Australian warehouse chain.

This data will be used to identify individuals & businesses individuals and businesses that may be running a part of their normal business activities ‘off the books’ or operating ‘underground’ and avoiding their taxation obligations to register and lodge returns.

Where the ATO identifies taxpayers who appear not to have declared all, or part, of their income, the ATO will either:

  • write to the taxpayer asking them to explain the inconsistency and offering the opportunity to make a voluntary disclosure, or
  • contact the taxpayer directly via an audit process.

The ATO publishes profitability benchmarks which provide a guide as to the expected profitability on over 100 industries.

Should you wish to discuss any aspect of the ATO’s data matching program, assist with your taxation affairs or compare the level of profit in your business against ATO benchmarks, please contact DKP & Co on 03 8319 4017 or visit our website www.dkpco.com.au for more information.

Liability limited by a scheme approved under Professional Standards Legislation.

The information contained in this news alert is of a general nature and should not be relied upon as a substitute for specific advice.

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