Fast cars and low income on the ATO radar
Mel and Dave chat with Michelle Maynard – Accountant, Partner at Carbon Group
Bought a new car over $10,000? The ATO will know about it. Why do they want to know? They are trying to match people who have declared low incomes but are able to afford expensive cars so they can kindly ask them to “please explain.” This isn’t a new concept. In fact, this program is in its 16th year and has helped the ATO find taxpayers who have concealed income, hidden wealth, and dodged their tax obligations. Accessed early release of super last year and now have new wheels? The ATO may ask how that satisfies “financial hardship” and you could be penalised. The reach of the ATO is getting wider, and the data matching is getting more refined. Time will tell how many will get caught.