The ATO conducts an extensive data matching program to assist them in administrating the tax system and as a law enforcement tool. Information is collected electronically and then it is validated, analysed and used to:
- Pre-fill tax returns, making it easier for individuals to lodge a tax return.
- Reassure the community that the ATO protects honest people and businesses from unfair competition.
- Ensure individuals and businesses make lodgements when required to do so and correctly declare income and deductions.
The ATO collects information for more than 600 million transactions from a wide range of third party sources such as banks, financial institutions, employers, state revenue agencies, other federal government bodies, online selling platforms, stock exchanges, health insurers and building industry businesses.
Make sure your tax returns are being completed accurately for you and your business, if you require any advice Contact your accountant.