ATO issues grim warning to taxpayers who have filed dodgy returns and promises to scrutinise EVERY expense claim from the past year
- ATO warns it will be using hi-tech systems to scan returns from the past year
- Tax evasion costs economy $8.7 mill- some making fake websites and receipts
- It comes as millions file their claims following Scott Morison’s July tax offset
The Australian Taxation Office has issued a grim warning to taxpayers who have filed dodgy returns as they promise to scrutinise every expense claim from the past year.
Hi-tech cross-checking systems will examine returns for inaccuracies or deceitful deductions that could see tax payers issued hefty fines.
Assistant tax commissioner Karen Foat said tax evasion costs the economy $8.7 billion annually, in an ABC report on Friday, with some fraudsters constructing fake websites, records, and receipts.
Hi-tech cross-checking systems will examine returns for inaccuracies or deceitful deductions that could see tax payers issued hefty fines
‘We know some people think it’s okay to over claim their deductions even by just a little. But our message is – that’s not okay,’ she told the ABC.
The cross-matching analysis – which has been updated for the 2019 tax season – detects around two million people to be contacted over claim discrepancies annually.
Inconsistencies that raise suspicion include unlikely work uniforms, the use of a private vehicle for work, third-party data revealing under-reported income, and deductions that appear high compared to others with a similar job and income level.
Ms Float said those contacted by the ATO will first be asked to validate expense claims before an audit is launched.
‘We may need to have a more detailed review. We understand it can be frustrating to dig up old receipts and information, but it is necessary,’ she told the ABC.
While she says some underpayments are genuine mistakes, she urged intentional wrong doers to ‘fess up’ immediately if caught out.
Tax Institute president Tim Neilson warned those facing an audit to seek professional assistance.
The warning comes as millions lodge their returns following Scott Morison’s July tax offset
‘Navigating an audit could be tricky, so it is wise to have the expertise of a tax professional who has walked this path before on your side,’ he told the ABC.
The announcement sparked outrage among Facebook users, who believe the audit is poorly directed at individuals over businesses.
‘Still chasing the wrong people… how about some corporations that owe billions?’ one woman posted.
Ms Float rejected the claims, insisting that money has been injected into tax surveillance efforts of large companies and multinationals.
In August, results from an ATO study revealed small businesses are one of the largest contributors to the tax gap costing Australia over $11 billion a year.
The warning comes as millions lodge their returns following Scott Morrison’s July tax offset.