Bowling logo
P. 02 4983 1611 | F. 02 4983 1730 | E.

ATO developing software to stop tax avoidance

The ATO is in the midst of developing advanced data programs to find individuals who are leaving a source of income out of their tax return. Analytical tools have been developed to utilise the amount of data the ATO receives to identify instances where income has gone unreported. This is to address the annual $1.4 billion tax shortfall caused by individuals who leave income out of their return.

The ATO has identified that the most common mistakes are made by taxpayers leaving out cash wages. There are also issues with the non-disclosure of income from second jobs, capital gains on cryptocurrency, the sharing economy, the gig economy and foreign-sourced income.

Concerning foreign sourced income, the ATO has identified that most funds come from the UK, USA, China, Switzerland, Hong Kong, New Zealand and Singapore. In response to this, the ATO is developing a single global standard for collection, reporting and exchange of financial account information on foreign tax residents.

The ATO imposes penalties and interest for a failure to disclose an accurate statement of income tax. The penalties can range from 25 per cent up to 75 per cent of the shortfall, in addition to paying the money owed.

Bowling and associates services

accounting services

Bowling and associates services

taxation services

Bowling and associates services

self managed super funds

Bowling and associates services

bookkeeping

Bowling and associates services

company secretarial

Bowling and associates services

business support

Bowling and associates services

audit
services

Bowling and associates services

business
plans

Bowling and associates services

cloud accounting