EXCLUSIVE INTERVIEW: Treasurer fires warning shot at Labor over negative gearing and increasing property taxes
Federal Treasurer Josh Frydenberg has called out Labor’s “war on aspiration” as the party looks to crack down on n...
The Tax Office’s unprecedented access to third-party data has revealed one way cunning taxpayers have been using property to cheat the system.
The ATO’s data-matching program is at its most sophisticated, involving automated scanning and analysis of publicly available data, as well as data from third parties like banks, financial institutions, and both state and federal regulators.
As part of this program, the Tax Office has access to rental bond data, and has caught out dodgy operators who are claiming expenses for properties they don’t own, or that don’t exist.
According to assistant commissioner at the ATO Karen Foat, that strategy is an easy spot for the Tax Office with its data matching technology and processes.
“We can and do identify that quite quickly, and act on it quite quickly,” she told Smart Property Investment.
However, often when mistakes are made, they’re not sinister and are related to a misunderstanding of how tax laws apply to investment properties.
“We do see people making a range of mistakes, even when they’re trying to do the right thing. Often it’s just that – an honest mistake,” said Ms Foat.
For a comprehensive list of what the ATO is monitoring this tax time, click here.
Property refers to either a tangible or intangible item that an individual or business has legal rights or ownership of, such as houses, cars, stocks or bond certificates.