ATO targeting ‘lifestyle assets’
4 February 2020
The ATO will be asking insurance companies for policy information of taxpayers who own luxury assets. The requested information will be used to help the ATO identify taxpayers who may not be fulfilling their tax and reporting obligations.
Targeted assets include: boats, thoroughbred horses, fine art, expensive cars and aircraft.
Over 30 insurance companies will be asked to comply with the ATO’s request to hand over insurance information, collected between 2015-2016 to 2019-2020 financial years.
It is expected that the data of approximately 350,000 taxpayers will be collected. The information will be used by the ATO to conduct profiling activities as part of its data-matching program.
Taxpayers who own significant lifestyle assets but are declaring a modest taxable income may may find themselves under the spotlight.
Deputy Commissioner Deborah Jenkins said “If a taxpayer is reporting a taxable income of $70,000 to us but we know they own a three million dollar yacht then this is likely to raise some red flags,”
“Doing things like being untruthful about your income or failing to declare capital gains is effectively stealing from the community – and this is money the community is missing out on to pay for infrastructure and services we all rely on like schools, hospitals, and roads.”
Assets that equal or exceed the below values will be reported on:
- Marine vessels $100,000
- Motor vehicles $65,000
- Thoroughbred horses $65,000
- Fine art $100,000 per item
- Aircraft $150,000
More information can be found on the ATO website
Contact the team at Shakespeare on 08 9321 2111 if you’d like to discuss how this may apply to your individual circumstances.
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