Data matching at ATO causing concern

It has come to our attention that clients have been receiving letters from the Australian Taxation Office (ATO) over the last few years correcting under-declared income and missed group certificates.

Clients have been given 30 days to provide evidence or accept an amendment.

This worked well as the data matching was with the banks and ATO. It appeared that the ATO only contacted you if the mistake was in their favour.

This year, the ATO has gone a step further, matching data with external third parties such as other government agencies. Already, we have witnessed this further matching, but clients still have the same 30 days to provide evidence or accept an amendment.

Often a mere suspicion will result in a letter. Importantly, if you have a myGov online account your agent isn’t being notified.

If you receive a letter, do check with your agent.

Date published 26 Sep 2017

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.