ATO now data matching all Motor Vehicles over $10,000

The ATO will acquire information from the eight State and Territory motor vehicle registry authorities on vehicles that have been transferred or newly registered where the purchase price or market value is equal to or greater than $10,000. The financial years impacted are 2016-17, 2017-18 and 2018-19.

The majority of transactions in the data matching process will involve a single seller and a single buyer. Examples of transactions matched are:

Details obtained will include details of the purchaser, seller, address details, date of births of individuals, leasing company (if applicable), Australian Business Number (if applicable), Australian Company Number (if Applicable).

The above records will then be electronically matched with the ATO data holdings to identify avoidance with obligations relating to the correct reporting and payments relating to taxation, GST and superannuation laws.

All our clients now need to be aware that the data matching program provides the ATO with information about who buys and sells motor vehicles over $10,000. This will mean they can now have checks in place for the following:

• taxpayers who do not meet their obligations when lodging activity statements
• taxpayers incorrectly reporting income
• sellers under more scrutiny – for example, fleet managers, leasing companies, licensed dealers
• taxpayers who have not met their obligations regarding Fringe Benefits Tax
• the purchase of luxury cars will be under more scrutiny to ensure the correct luxury car tax is being recorded

The above means that you will have to be thorough with your compliance. If you fail to meet these obligations the ATO can escalate each case and prosecution action may be initiated. If you have any questions about this change please discuss this at your next meeting with us.

-Karen Banks