Remunerator News

Aug 21 2019

ATO Data-Matching For Your Novated Lease

What is it and How Does it Work?

The motor vehicle registries data matching program was developed to evaluate the overall taxation compliance of individuals and businesses involved in buying and selling motor vehicles.

State and territory motor vehicle registering authority’s data is matched against the ATO’s taxpayers records in order to determine and identify those who are not meeting their registration, reporting, lodgement and payment obligations.

If a vehicle has been transferred or newly registered during 2016-17, 2017-18 and 2018-19 financial years, where the purchase price or market value is equal than or greater than $10,000, information will be acquired from the state and territory motor vehicle registry authorities.

How to Know if You’re on the ATO’s Radar?

The records of around 1.5 million people each financial year will be matched with ATO records to determine in compliance. The main objectives of the program have been:

  • To obtain intelligence about taxpayers that buy and sell motor vehicles to identify risks and trends of non-compliance with tax and super obligations
  • Identifying and addressing taxpayers buying and selling of motor vehicles who may not be meeting their obligations to register and lodge returns (including activity statements) and ensure the correct reporting of income and entitlement to deductions and input tax credits
  • Identify cases for investigation of taxpayers of interest, such as sellers, licensed dealers, fleet managers, leasing companies or representatives of these taxpayers to determine if the use of interposed proxy ownership is used to conceal the real accumulation of wealth
  • Identify and deal with those taxpayers who may not have met their obligations with regards to GST, fringe benefits tax, luxury car tax, fuel schemes and income tax

The ATO is aiming to promote voluntary compliance and strengthen community confidence in the integrity of the taxation system by publicising the conduct of this data matching program, further, to ensure compliance with registration, lodgement, correct reporting and payment of taxation and superannuation obligations.

For more information visit the ATO website