The Australian Tax Office (ATO) has set its sights on landlords who are using investment properties to avoid paying taxes. In a bid to catch those who are failing to meet their rental property tax return obligations.
The ATO has ordered banks to hand over data on 1.7 million people.
ATO New Data Matching Program
On April 6, the ATO announced its new data-matching program, targeting landlords who are claiming incorrect deductions, failing to pay capital gains tax, or not declaring rental income and expenses. The program will collect data about residential investment property loans from the 2021-22 to 2025-26 financial years.
A whooping $1.3 Billion Tax Gaps
The ATO estimates the rental component individuals’ tax gap to be a whopping $1.3 billion. That’s a lot of cash, and the ATO is determined to get its hands on it.
Collect Data from The Real Estate Agent
The Guardian reports that the ATO believes the program will “promote voluntary compliance” by making it easier for individuals to prepare their own tax returns through myTax and providing prefilled details for tax agents.
Do Not Dodge Your Rental Property Tax Return Obligations
For those still attempting to dodge their rental property tax return, the ATO has a plan. When the ATO identifies a relevant case for administration, they will contact an individual or tax agent to verify any discrepancies. Individuals and tax agents will have 28 days to respond before the ATO takes administrative action.
The ATO’s website states that “each year we undertake the property management data-matching program to allow us to identify and address a number of taxation risks in the investment property market.” So, if you’re a landlord trying to avoid paying taxes, it’s time to face the music.
Don’t worry, though – the ATO isn’t just out to get you. The program is also aimed at helping those who are doing the right thing by promoting voluntary compliance. And who knows, maybe it’ll even make tax season a little less stressful for everyone.
Leading CPA accountant who will look after you
Are you a rental property owner in Inner West Sydney, Belrose Northern Beaches, or Adelaide? If so, then you know how important it is to stay on top of your tax returns to ensure that the Australian Taxation Office (ATO) doesn’t come after you. Especially with the recent data matching program. But with so many tax laws and regulations to keep track of, it can be overwhelming and stressful to navigate the tax system on your own.
That’s where EndureGo Tax comes in. As the leading CPA accountant in Inner West Sydney, Belrose Northern Beaches, and Adelaide, we specialize in helping rental property owners like you with your tax returns. Our team of expert accountants will work with you every step of the way to ensure that you stay vigilant and correct, so you can avoid any unwanted attention from the ATO.