The ATO have been hounding lately that they have drastically improved their data matching capabilities.
Basically speaking, this means that the ATO will electronically match their data holdings with various different state and territory authorities. If their is a variance between the two forms of data, the ATO may question this and ask you for additional information regarding the situation.
So what data are the ATO matching?
– Payments from employers
– Interest & other payments from banks & financial institutions (this also includes some overseas banks)
– Private Health insurance funds
– Cross checking BAS statements
– Information of property & asset disposals including motor vehicles
So what exactly are they cross referencing?
The ATO want to know that what you are reporting in your income tax return matches the data they are provided by third parties, so if you are ensuring you provide your tax agent with all of the correct documentation then you will have nothing to worry about.
This should not come across as a scare tactic from the ATO, rather it is assuring that those who are avoiding tax are getting caught out and the honest taxpayers like us are not getting ripped off.
The great thing about using Nixer is we cross reference what you provide to us with the data the ATO has, we do this through a report they ATO provides which is called a pre-filling report. If we notice any discrepancy between what the ATO has on file and what you provide us, then we will reach out to you and get to the bottom of it.
