Tax Audit Hot Spots

A statement from the tax commissioner has indicated that there is a high chance of greater audit attention to the following:

Work Related Expense Claims (WRE) 

Claims that do not require written evidence (e.g. home laundry, vehicle cents/km, deductions under$300) still need to be incurred in gaining or producing assessable income.

Air BNB Operators 

Income is correctly declared and deductions are correctly claimed (e.g. apportioned where relevant).

Capital Gains Tax

CGT issues with applying the main residence exemption.

ATO Data Matching

The ATO are continuing along their path of data matching with information supplied by third parties. Presently, there is an ongoing investigation in to work related expense claims made by employees of a large corporation. In this case the employer has supplied to the ATO, all information in regards to work conditions and all necessary items required to complete their work. If the employees work related deductions are different to the information supplied by their employer, the ATO are reviewing their deductions.

Other areas of data matching the ATO access include Contractor Payment Reports (TPAR), Department of Immigration and Border Protection, Online selling (e.g. Ebay, Gumtree), Ride Sharing (e.g. Uber) and share transactions from Share Registry Providers.

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