In an unprecedented first for small business tax compliance, the Tax Office has revealed it will chase up incorrectly disclosed income and match it to credit card and debit card records throughout the 2014-15 financial year.
As part of the blitz, the Tax Office will ask major Australian financial institutions for the online purchase details of around 90,000 business-owning taxpayers.
Almost 900,000 sets of credit and debit card payment information will be matched to merchant accounts to determine the real amount and value of transactions processed in the 2014-15 financial year.
According to a government statement, the blitz aims to ensure “merchants are correctly meeting their taxation obligations in relation to their business income.
“These obligations include registration, lodgement, reporting and payment responsibilities.”
The Tax Office is calling for businesses to make voluntary disclosures to correct mistakes before the sweep begins. It has released a list of the banks and financial institutions earmarked for data collection:
- American Express Australia Limited
- Australia and New Zealand Banking Group Limited
- Bank of Queensland Limited
- Bendigo and Adelaide Bank Limited
- BWA Merchant Services Pty Ltd
- Commonwealth Bank of Australia
- Diners Club Australia
- National Australia Bank Limited
- St George Bank
- Tyro Payments Limited
- Westpac Banking Corporation