What to expect
The Australian Taxation Office will be obtaining information on insurance policies for certain classes of assets, including marine vessels, enthusiast motor vehicles, thoroughbred race horses, fine art and aircraft and using it to conduct data matching.
This data will aim to improve their profiling of taxpayers while providing a more comprehensive view of their assets and accumulated wealth.
The data matching program will allow the ATO to identify and address a number of taxation risks, including:
This means targeting those who are accumulating or improving their assets but not demonstrating sufficient income in their tax returns to show the financial means to pay for them.
Income tax and capital gains
Focusing on those disposing of assets and not declaring the revenue and/or capital gains on those disposals.
Looking at those that may be purchasing assets for personal use through their business or related entities while claiming input tax credits they are not entitled to.
Fringe benefits tax
For those who may be purchasing assets through their business entities, then using those assets for the personal enjoyment of an associate or employee giving rise to a fringe benefits tax liability.
Self-managed superannuation funds that may be acquiring assets but applying them to the benefit of the fund’s trustee and beneficiaries.