ATO - Motor Vehicle Data Matching

The ATO obtains information from state and territory motor vehicle registering bodies that is matched against taxpayer records. This is to identify those participating in the cash economy by not declaring income to deliberately avoid their tax obligations.

Data will be obtained for all motor vehicles where the transfer and/or market value is $10,000 or greater from 1 July 2009 to 30 June 2010.

Motor vehicle data is used to improve compliance with tax obligations of particular groups of taxpayers by allowing the ATO to:

• Identify taxpayers whose expenditure is in excess of their reported income
• Identify businesses that sell vehicles and do not report or under report those sales
• Obtain intelligence about this group and identify risks and trends of non-compliance
• Develop and implement strategies to improve voluntary compliance that may include educational or audit activities as appropriate.
• Help in addressing potential non-compliance in the areas of income tax, superannuation, GST and fringe benefits tax.

Those identified at risk of potentially skimming some or all of their cash takings, running part of their business off the books or in other ways not reporting all their income should make a voluntary disclosure of any under reported amounts. Where appropriate the data obtained will be used to support default assessments of a business’s tax liabilities. Data matching projects help protect honest taxpayers, by deterring, detecting and dealing with those who have not complied.

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