MONEY FOR NOTHING?
Tax office to compel insurers to reveal lifestyle assets.
Lifestyle assets in ATO's sights
Ever wondered how someone can own a luxury boat and a top of the range 4X4 to tow it, artwork, designer jewels, holiday home and a cellar of fine wines with an income of just $70k? So does the Australian Taxation Office (ATO).
In a bid to ensure people meet their tax obligations, the ATO is requesting a further five years’ worth of policy information from insurance companies for taxpayers with “lifestyle assets” (FY16 to FY20).
More than 30 insurers will be required to reveal the policy details of some 350,000 taxpayers who have cover for marine vessels (valued at $100k+), motor vehicles ($65k+), thoroughbred horses ($65k+), fine art ($100k per item) and aircraft ($150k+).
The information provided by insurers will be used by the ATO for compliance profiling, helping the agency to get a “more complete picture about the actual financial situation of taxpayers as compared with what is reported on tax returns”, said the Deputy Commissioner.
If you think you may have failed to properly comply with your tax obligations, talk to your tax agent or make a voluntary disclosure to the ATO.
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