26 Sep 14
On bank data matching program - the ATO responds
In 2014 TAXVINE No 34 (19 September 2014), Member 140 wrote about the ATO data matching program involving merchant transactions provided to the ATO by banks.
THE ATO NOW RESPONDS
"As part of the ATO’s data matching program we match merchant facility sales to reported income for businesses where we expect there to be payments received through both merchant facilities and by cash. The ATO’s interest is flagged when businesses report income which is the same, or very close to, the sales reported through their merchant facility when we would expect there to be a component of cash sales to be made. When we identify a possible anomaly we write to the taxpayer to allow them to review that income from all sources has been declared accurately. We also provide the opportunity for taxpayers to self-correct any error.
As a result of recent feedback we recognise that we need to make our concerns clearer in the letter. We have contacted Member 140 and have addressed this member’s concerns. We sincerely thank Member 140 for this comment and constructive feedback."