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On income matching

22 Oct 10 On income matching

MEMBER 324 writes:

"I have a client who received a letter from the ATO Income Matching Section stating that he had omitted interest  from his return. I followed it up with the Taxpayer and he believed he had disclosed all the interest on the 2 year Deferred Compound interest deposit.

He sent me the annual notices from Esanda  for the 3 years stating the interest to be disclosed for each of the years and all interest was correctly recorded in each year.

Upon further review it could be seen that the ATO information incorrectly included the interest for the year ended 30/6/06 as well as the interest for the year in question - 30/6/08.

I faxed the statements from Esanda to the ATO together with an explanation. I subsequently received a phone call from an ATO officer who stated he had received our information but the client had not declared all his interest. I pointed out that he had and referred him to the supporting documents he had. He continued to state that because the taxpayer had not disclosed the same interest that had been reported by Esanda the interest in his return was incorrect.

After further discussion he sought advice from a supervisor and returned to me to inform me that he was willing to accept my explanation today. I pointed out that given the taxpayer disclosed the interest declared on the document supplied by Esanda, he should accept the explanation 7 days a week, 52 weeks a year. He then tried to tell me that the taxpayer should double check with Esanda what interest they are disclosing. He would not accept that the information that the ATO had from Esanda was wrong when it clearly was."