The ATO has indicated that it intends to undertake an extensive examination of share transactions – dating all the way back to 1985!
The objective of the data matching activity is to identify taxpayers with capital gains that have not been included in their taxable income. It is also likely that the investigation will reveal any inconsistencies in reporting of Employee Share Schemes (ESS).
In order to undertake this investigation, the ATO will be accessing the details of entities’ share records dating back over twenty years. It is estimated that in the process over 95 million records will be obtained, including the records of 1.2 million individual taxpayers.
By matching sale and purchase details, the tax office hopes to identify taxpayers that have failed to report capital gains made from share transactions.
Individual taxpayers who have failed to report a capital gain from shares (or disclose shares from an ESS) may care to contact the tax office to have the relevant tax return amended.
Our accountants are at hand to help you with any question you may have in relation to share transactions and the ATO.
Call (02) 4926 2300 or email us.
If the team at Leenane Templeton can help you with your share transactions or your tax in general, please do not hesitate to contact us.