An announcement was made on 4 August 2015, by the Commissioner of Taxation that the Australian Taxation Office (ATO) will be performing comprehensive data matching by acquiring information from the Department of Immigration and Border Protection. The purpose of this program is to establish that taxpayers are correctly meeting their taxation obligations which include registration, lodgement, reporting, and payment responsibilities. Over 1 million individuals who have either been granted visas in the period 1 July 2013 to 30 June 2015, or who will be granted visas in the period up to 30 June 2017, are being targeted. With the proposed number of affected individuals in excess of 1 million, it is likely that many employers and migration agents will have visa holders who will be targeted under this program.
The Australian Taxation Office (“ATO”) is targeting over 1 million individuals who have either been granted visas in the period 1 July 2013 to 30 June 2015, or who will be granted visas in the period up to 30 June 2017.1
With the proposed number of affected individuals in excess of 1 million, it is likely that many employers and migration agents will have visa holders who will be targeted under this program. It is therefore crucial that employers and visa holders be vigilant and take appropriate steps to meet their existing and future obligations. Organizations should review their processes around compliance and the compliance of their employees.
An announcement was made on 4 August 2015, by the Commissioner of Taxation that the ATO will be performing comprehensive data matching by acquiring information from the Department of Immigration and Border Protection (“DIBP”).2 The purpose of this program is to establish that taxpayers are correctly meeting their taxation obligations which include registration, lodgement, reporting, and payment responsibilities.
The ATO has already been data matching visa data from DIBP and its predecessors for a number of years. In its analysis of data about visas granted between 1 July 2011 and 30 June 2014, the ATO identified an elevated level of risk relating to non-compliance and fraud, driving the announced expanded program.
It is intended that this the data will be used in ATO risk detection models to select populations for administrative action relating to tax return integrity, income tax and goods and services tax non-compliance and fraud. Targeting these populations is intended to encourage taxpayers (sponsors and visa holders) to:
Where discrepancies are found, taxpayers will be given the opportunity to verify the accuracy of the information obtained by the ATO. Taxpayers will generally be given at least 28 days to respond before administrative action is taken.
Whilst the ATO as the matching and primary-user agency will generally be the sole user of the data, it may provide in very limited and specific circumstances as contained in Division 355 of Schedule 1 to the Taxation Administration Act 1953, individual records to other agencies, including state and territory revenue authorities and law enforcement agencies. Such other agencies include those responsible for:
If any organizations have concerns about the data matching program, they should contact their usual global mobility and/or immigration adviser. The Global Mobility Services & Immigration team in the KPMG International member firm in Australia has experience in reviewing and advising on company and individual compliance obligations.
1 From 5.2 “Number of records” in the the ATO’s
2 For the notice of the data matching program, see the ComLaw Web site (http://www.comlaw.gov.au) at: Notice .
For further information or assistance, please contact your local GMS or People Services professional*, or one of the following professionals with the KPMG International member firm in Australia:
New South Wales and Australian Capital Territory
Andy Hutt (Tax)
Tel. +61 2 9335 8655
Michael Wall (Immigration)
Tel. +61 2 9335 8625
Victoria, South Australia, and Tasmania
Ben Travers (Tax)
Tel. +61 3 9288 5279
Jacqui Tucker (Tax)
Tel. +61 8 8236 3378
John Unger (Immigration)
Tel. +61 3 9288 5725
Ivan Hoe (Immigration)
Tel. +61 8 9263 7181
Dan Hodgson (Tax)
Tel. +61 8 9278 2053
Queensland and Northern Territory
Hayley Lock (Tax)
Tel. +61 7 3434 9176
Philip Duncan (Immigration)
Tel. +61 7 3434 9196
* Please note the KPMG International member firm in the United States does not provide immigration services.
The information contained in this newsletter was submitted by the KPMG International member firm in Australia.
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