In this issue of Tax Talk, we cover:
The ATO is now liaising with insurance companies to find out who owns polices on valuable assets (cars, boats etc.) and see if the cost of these assets match the income levels being reported by the taxpayer. Expect an audit if your reported income is not in line with your assets!
The ATO is also obtaining data from all State and Territory Revenue Authorities and Rental Boards from 20 September 1985 to now identify unreported investment property sales and unreported rental income. The ATO are estimated to have collected records on 11.3million unique individuals already.
The ATO has set the approved pay as you go (PAYG) withholding rate for cents per kilometre car allowances at 66 cents per kilometre from 1 July 2015, no matter the size of the car’s engine. Employers should withhold tax from any amount above 66 cents, as failure to do so may result in the employee having a tax liability when they lodge their tax return.