Online selling: ATO data-matches with eBay and Trading Post

28-Jun-2011 The ATO says it has obtained data from eBay Australia and Trading Post Australia to assess the level of taxation compliance of individuals and businesses that sell goods or services online.

Under a new data-matching program (details of which were gazetted on 28 July 2010 in Commonwealth Gazette No GN29), the ATO says it has obtained data from eBay Australia and Trading Post Australia to assess the level of taxation compliance of individuals and businesses that sell goods or services online. The data identifies members of online selling sites who are involved in selling goods and services of a total value greater than $20,000 in any of the past 3 financial years ie 2007-08, 2008-09 and 2009-10. The ATO expects that records relating to between 10,000 and 30,000 individuals will be matched. The Commissioner said records will be matched against different identifiers such as TFNs, ABNs, addresses and dates of birth.

The ATO says it uses this data to improve compliance by, for example, allowing it to: identify individuals and businesses that don't report or under report their sales; and identify individuals and businesses that operate "off the books" and avoid their obligations by not registering, lodging returns or making payments. The ATO says it will contact individuals and businesses that it identifies as at risk of running part of their business off the books or in other ways not reporting all their income. The Commissioner encourages anyone who has understated their taxable income in the last 3 years to make a voluntary disclosure (with a potential 80% reduction in penalties).

Source:

2011. National Institute of Accountants. Retrieved August 12, 2010, from: http://nat.nia.org.au/link/id/27841344c623d4856d91Pba41bfff55545a6a871f/page.html#81522724c5f8b65e276b

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