Hot Issues
spacer
Small businesses may ‘collapse under strain of payday super’, IPA warns
spacer
ATO’s hands tied with scrapping on-hold debts, expert says
spacer
What Drives Your Business Growth and Profits?
spacer
Australian Taxation Office (ATO) shifting to firmer debt collection activity
spacer
Why employee v contractor comes down to fine print
spacer
Sharing economy reporting regime for platform operators
spacer
Countries producing the most solar power by gigawatt hours
spacer
Illegal access nets $637 million
spacer
Accessing superannuation benefits.
spacer
Does your business have a company Power of Attorney?
spacer
Labor tweaks stage 3 tax cuts to make room for ‘middle Australia’
spacer
GrantConnect
spacer
2 in 3 SMEs benefit from instant asset write-off, survey reveals
spacer
Updated guidance on R&D claims
spacer
Do you know how to recover debts?
spacer
Wheat Production by Country
spacer
Types of small business benchmarks
spacer
What is a Commercial Lease?
spacer
ATO warns advisers against suspect R&D tax claims
spacer
The year of workplace law upheaval
spacer
How to Resolve Invoice Payment Disputes
spacer
Raft of revenue tweaks in MYEFO to raise millions
spacer
The Countries that Export the Most Wine in the World
spacer
Record low invoice values ‘reveal inflation sting’
spacer
A 2023 Advent Calendar for our clients
spacer
Average refund plummets by $580, total payout down $5.4bn
spacer
FBT – Christmas Parties and Taxi Fare/Rideshare
Article archive
spacer
Quarter 4 October - December 2023
spacer
Quarter 3 July - September 2023
spacer
Quarter 2 April - June 2023
spacer
Quarter 1 January - March 2023
spacer
Quarter 4 October - December 2022
spacer
Quarter 3 July - September 2022
spacer
Quarter 2 April - June 2022
spacer
Quarter 1 January - March 2022
spacer
Quarter 4 October - December 2021
spacer
Quarter 3 July - September 2021
spacer
Quarter 2 April - June 2021
spacer
Quarter 1 January - March 2021
spacer
Quarter 4 October - December 2020
spacer
Quarter 3 July - September 2020
spacer
Quarter 2 April - June 2020
spacer
Quarter 1 January - March 2020
spacer
Quarter 4 October - December 2019
spacer
Quarter 3 July - September 2019
spacer
Quarter 2 April - June 2019
spacer
Quarter 1 January - March 2019
spacer
Quarter 4 October - December 2018
spacer
Quarter 3 July - September 2018
spacer
Quarter 2 April - June 2018
spacer
Quarter 1 January - March 2018
spacer
Quarter 4 October - December 2017
spacer
Quarter 3 July - September 2017
spacer
Quarter 2 April - June 2017
spacer
Quarter 1 January - March 2017
spacer
Quarter 4 October - December 2016
spacer
Quarter 3 July - September 2016
spacer
Quarter 2 April - June 2016
spacer
Quarter 1 January - March 2016
spacer
Quarter 4 October - December 2015
spacer
Quarter 3 July - September 2015
spacer
Quarter 2 April - June 2015
spacer
Quarter 1 January - March 2015
spacer
Quarter 4 October - December 2014
Quarter 4 of, 2017 archive
spacer
SMSFs warned on ‘ticking time bomb’ with outdated deeds
spacer
Taxation ruling on commercial website deductibility
spacer
68% of SMEs ‘significantly stressed,’ 85% rely on accountants
spacer
Statutory wills are underutilised in estate planning
spacer
Small business slips on lodgement deadlines
spacer
300,000 SMEs utilising $20K write-off, says ATO
spacer
‘A bad thing times 10’: ATO set for new SMSF blitz
spacer
Capital Gains and Renounceable Rights
spacer
Paperwork bungles lead to $38k in payments
spacer
Australian Dietary Guidelines and healthy eating chart (PDF)
spacer
Former director liable for company’s unpaid tax liabilities
spacer
Super for housing measures enter Senate
spacer
No Special Circumstances to allow Excess Super Contributions
spacer
Housing tax measures progress to Parliament
spacer
AirBnb – wrong tax outcome?
spacer
Are young investors wasting their youth?
spacer
ATO sending 'more letters than ever' on income tax errors
spacer
Powerful Budgeting, cash flow and Super Tools available on our site.
spacer
Property, unit trusts in ATO's sights
spacer
Australian Dietary Guidelines and healthy eating chart (PDF)
spacer
Major Bank Levy Passed
spacer
NSW tops list as ATO reveals billions in lost super
ATO sending 'more letters than ever' on income tax errors

One firm believes the ATO is distributing more letters than ever to taxpayers whose tax returns’ have been flagged as failing their data matching processes.

       

 

The ATO’s new data matching technology is catching out more taxpayers than ever this year according to online tax agents Etax.

This approach was no secret ahead of tax time, with ATO assistant commissioner Kath Anderson reminding accountants and SMEs in June that the ATO would be using real-time data to compare taxpayers with others in similar occupations and income brackets to identify higher-than-expected claims.

Etax senior tax agent, Liz Russell, said that thousands of Australians have received data matching letters, and is urging accountants to work with affected clients to take action.

“If you bury your head in the sand and do nothing, the ATO will make an adjustment based on what it thinks. They can adjust details and remove deductions they’re suspicious about. This could end up costing you hundreds, if not thousands of dollars,” Ms Russell said.

Ms Russell said that while the number of data matching letters being issued has increased this year, it is difficult to ascertain how many findings are from deliberate mis-reporting.

“Taxpayers tend to receive these letters off the back of common mistakes, for example they forgot to include one PAYG summary after switching jobs during the year, or they didn’t realise that bank interest, allowances and Centrelink payments like Newstart and Youth Allowance, are classified as income and must be declared on your tax return,” Ms Russell said.

“This year, we are seeing more data matching letters being issued, but that doesn’t mean more people are doing the wrong thing. The ATO’s latest technology helps it cast a wider net and catch more errors or unusual deductions claims.”

 

LARA BULLOCK
15 Sep 2017
accountantsdaily.com.au

 

site By AcctWeb