The Australian Inland Revenue Department has adopted new data matching techniques to examine those who have not reported overseas revenues. (photo by Australian Financial Review)
According to the Australian Financial Review, Australians who do not declare their cash and overseas income in their annual tax return are at risk of being seized by the new data matching technology used by the Australian Inland Revenue Service (ATO).
The IRD is working to close the A $1.4 billion gap in undeclared revenues a year, in a big move. The department said it was developing new analysis tools to analyze large amounts of government data and identify inconsistencies.
Starting this month, Australia will exchange information with hundreds of overseas tax authorities to identify taxpayers with overseas sources of income; The data obtained from the Australian transaction reporting and Analysis Center (AUSTRAC), as well as through the overseas account tax Compliance Act (Foreign Account Tax Compliance Act) and other international exchange agreements, were used.
Analysis of data from the Australian Trade report and Analysis Center shows that Australians most often receive overseas funding from countries and regions such as the United Kingdom, the United States, China`s (mainland), Hong Kong, Switzerland, New Zealand and Singapore.
Assistant Commissioner of Inland Revenue Anderson. (photo by Australian Financial Review)
Anderson (Kath Anderson), assistant director of the Inland Revenue Department, said: "the loss of revenue due to understatement of revenue has caused a huge loss to the community. Although the personal amount may not be large, it adds up a lot. "
"We understand that people make mistakes and forget to include some income," she said. "but those who fail to report their income in order to evade taxes should be vigilant that they will be penalized with interest and (other) fines."
It is reported that tax returns are wrong, not only to repay the outstanding tax, but also to pay a fine (25% to 75% of the tax missed).
"We have found that the most common mistake is that taxpayers fail to report cash wages. However, we have also found that taxpayers intentionally or unintentionally do not account for income from second jobs, encrypted monetary capital gains, shared economic revenue, part-time economic (Gig Economy) revenue and offshore income. " Anderson said.
The IRD expects to review record-breaking information this year, not only to make tax rebates easier and faster, but also to find undeclared income faster.
Between July and August, more than 112000 tax rebate returns were automatically corrected and A $53 million recovered through the compliance review system.
"the Inland Revenue Bureau is concerned that taxpayers do not include income from pensions, jobs, investments abroad, as well as capital gains from overseas assets and income from business," he said. "the collection of additional data will help us identify those who deliberately fail to report revenue in tax rebates, as well as those who have multiple sources of income and are difficult to keep an accurate record," Anderson said.
