The ATO has flagged a major compliance operation to target small businesses which are failing to comply with their tax obligations. Up to 90,000 small businesses are expected to be caught in the ATO’s net as a result of the operation, which will be undertaken between now and the end of 2015.
Details will be requested from eleven Australian financial institutions for all credit and debit card payments received by small businesses for the 2014-15 financial year.
The ATO will match the credit and debit card payment data provided by the eleven financial institutions against ATO records to identify businesses that may not be meeting their tax obligations.
The ATO states that the objectives of the credit and debit data matching program are to:
The ATO is seeking to obtain external data to cross-reference with its own internal data to identify relevant cases for further action, including possible review or audit.
It is estimated that the total number of merchant account records obtained will be around 900,000. The number of individuals linked to those accounts is expected to be approximately 90,000.
Data will be obtained from:
If you think your business needs help in getting its financial house in order, contact our Tax and Business Services team on 13 40 42 or email email@example.com
Our H&R Block accountants are now working online. Book an appointment with an expert.