horse statue

Lifestyle assets under ATO watch

Lifestyle assets data matching program protocol

The ATO is conducting a lifestyle assets data matching program to obtain information on insurance policies for marine vessels, enthusiast motor vehicles, thoroughbred races horse, fine art and aircraft.

The ATO will obtain information from data providers for the 2013/14 and 2014/15 financial years, to identify taxpayers who are not fully complying with their obligations, and those operating outside the taxation and superannuation systems.

It will also allow the ATO to identify and address a number of taxation risks, including:

  • asset betterment—taxpayers accumulating or improving assets but not including sufficient income in their taxation returns to show the financial means to pay for them
  • income tax and CGT—taxpayers disposing of assets and not declaring the revenue and/or capital gains on those disposals
  • GST—taxpayers may be purchasing assets for personal use through their business or related entities and claiming input tax credits they are not entitled to
  • FBT—taxpayers may be purchasing assets through their business entities, but apply those assets to the personal enjoyment of an associate or employee giving rise to a fringe benefits tax liability, and
  • superannuation funds—self-managed superannuation funds may be acquiring assets but applying them to the benefit of the fund’s trustee or beneficiaries.

Partner with Salisburys on your pathway to success this tax time. Read how here or call us in Albury on 02 6041 3014.

Source: ATO website, June 2019