ATO definitely seeing more data this year!

Discussion in 'Accounting & Tax' started by NG., 24th Aug, 2019.

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  1. NG.

    NG. Well-Known Member

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    Just did my tax today with my accountant and looks like they now can see income related to paypal payments!

    Paypal funds incoming for me consist of two categories; when I have sold personal goods and because of the buyer/seller protection, have done the transaction through paypal. Secondly is my wifes income. Being an employee in an FBT paying company/charity, a portion of her income goes into this account where the account can be made to be used for meals/loan payment etc. Past 6 years in order for us to use these funds was debiting that account to her paypal. She would send money as a gift to me on paypal, and I would withdraw it out to my account, and in recent years re-directed it to our PPOR loan.

    Looks like the ATO have recognised this as income! Thought I share this as now we will change the method in how we utilise these funds best now. Given that we now have the non-deductible debt. WIll just arrange for a transfer to go directly to the loan, but was an interesting surprise sitting down with my accountant and seeing Paypal income has been noted from the ATO. A bit annoying given I have just sold random items around the house - circa $5k and paypal deems this as income. And a deep-dive on the circa $16k transferred by in was actually from my wife.
     
  2. money

    money Well-Known Member

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    Interesting.....how does the ATO get the info from Paypal, an American company? That's the 1st I've heard about this.
     
  3. datto

    datto Well-Known Member

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    ATO has prefilled my tax return with TAB winnings on horse races I have bet on.

    They have classified me as a professional gambler. My accountant said there is nothing I can do about it but it would help if I ring them and give a few good tips.

    I then woke up from dreaming.

    Relax NG. You're gonna give people heart attacks with that kind of talk.
     
  4. Mike A

    Mike A Well-Known Member

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    the portal also seems to be reporting ALL types of sales. had a few clients who have sold main residences and the contract date and amount has been reported as a potential capital gains tax event.
     
  5. Marg4000

    Marg4000 Well-Known Member

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    ATO have a lot of time on their hands.

    I received a lovely letter in June telling me that as I only received a franking credit refund, this year I did not have to lodge a form (unless income had changed) and they would just send me the money!

    And they did!!!
     
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  6. PandS

    PandS Well-Known Member

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    Easy by making it is their legal obligation if they take on Aussie customers do this, else don't do business here.
    Same with Amazon US goods, they said they wont collect GST if it was imposed on them, look like it just an empty threat.

    it cheaper and easier to follow the country rules and law rather than fight it
     
  7. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Paypal Australia is a resident company and Paypal is a US company. The ATO can also access the data through its IRS data sharing agreements but in most cases the paypal australia agreement is covered by a s264 notice that is updated annually. These days its virtually a live stream of data with the likes of google, amazon, paypal, ebay etc.

    GST is now managed by amazon, ebay, paypal etc since the way the import laws work the payment processor / platform provider becomes liable for the GST. Not the vendor as such but the platform will push the cost to them in the fees charged. Initially most platforms struggled and "bounced" aussie vendors to their AU website but now most have encountered similar laws elsewhere and have a multi-jurisdiction tax platform now. You can buy on Amazon USA and if the delivery comes to Australia GST is added. Same with several Chinese sites like alibaba etc.
     
  8. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Yes - I have seen a number of these. Doesnt mean it is taxable but puts taxpayers on notice. Had one which was a undisclosed gain. The ATO default calc was pretty close to the final one excepting the taxpayer had a period when it was a main residence.
     
  9. datto

    datto Well-Known Member

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    The black economy in Australia is worth about $40 billion.

    It's good that we got such an effective tax system that it can smash the black economy lol.

    A few paypal transactions worth $500 is a great start lol.

    Oh, wait a minute, this property investor has claimed $400 in capital expenditure as a repair. Let's smack 'em.

    Now, let's issue 5000 s264 notices and waste 1 million man hours in a futile data matching exercise to collect $50K in unpaid taxes.

    Better off spending money on educating taxpayers.
     
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  10. willair

    willair Well-Known Member Premium Member

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    As a grade 10 public school old school tie person like myself i could fix the black hole of the black silent economy within six months ...

    Just change all the 50-100 dollar bills ,give a six month time-frame where all the notes are cashed in --new for old ..

    Australia would go back to boom times with all the new clean money ,that's after the ATO whom some work for that post within this site ask the question ,you only claimed a income of 35k and where did the mouldy 1 mill in cash come from..Everyone a winner ,.

    Boys give back the $100,000 that got away
     
    Last edited: 26th Aug, 2019
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  11. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    They are often smarter than this. Crown casino may be busy. And some cafe's would have a surge in sales.
     
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  12. datto

    datto Well-Known Member

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    What? Who are these members?

    I'm outa here!
     
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  13. ChrisP73

    ChrisP73 Well-Known Member

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    Still, even if the entire 40bil was laundered if the gov could collect additional GST / gambling tax it might be worth doing on an annual basis :)
     
  14. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Proceeds of crime can be taxed at 100% under confiscation laws.
    And has a side effect of the crims shooting other crims. Win-Win.
     
  15. willair

    willair Well-Known Member Premium Member

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    Someone told me a rumor in the old sites chat room ,apart from that i know nothing and pay tax march next year..
     
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  16. Blueskies

    Blueskies Well-Known Member

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    This was tried in India, with limited success. Never underestimate people’s ingenuity when it comes to tax evasion!

    2016 Indian banknote demonetisation - Wikipedia
     
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  17. Scott No Mates

    Scott No Mates Well-Known Member

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    Geez, they must be on to me. Mine has been filled in too but with the horses that I have to yet to place a bet on. :rolleyes: If only they'd give me the Powerball Numbers for this Thursday.
     
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