ATO Embarks on Substantial Real Property Transactions Data Matching
The ATO has announced that they will be embarking on a data matching exercise for real property transactions that have occurred during the period 20 September 1985 to 30 June 2017.
Real property transactions can give rise to significant capital gains tax and GST consequences. The ATO will be focused on whether these consequences have been appropriately reported by taxpayers.
This data will be obtained from various sources such as revenue offices, rental bond authorities and land title offices.
The Commissioner has stated that the purpose of this data matching program is to confirm that taxpayers have been correctly meeting their tax obligations.
The ATO expects to match data for approximately 11.3 million individuals. If the data matching triggers a discrepancy, the taxpayer will be notified via a letter and will have the opportunity to respond. Prosecution may eventuate, but it is unlikely, as most action would involve an amendment to the years assessment with possible penalties and general interest charges.