The second Commissioner of Taxation, Bruce Quigley, has recently provided an overview of ATO compliance focus areas for 2010 – 11. Mr Quigley revealed that the ATO is increasing its use of data-matching to identify undisclosed interest income of individuals. He said the ATO has sent out more than 400,000 letters to individuals with higher value discrepancies, asking for clarification as to why the income had not been reported.
Other main focus areas highlighted by Mr Quigley included:
- work-related expenses: In 2010 – 11, the ATO will focus on occupations with a pattern of large and / or rising claims or with issues identified from ATO intelligence
- small business and cash economy: The ATO has recently begun sending letters to approximately 1000 businesses that are reporting income that it considers significantly outside of the small business performance benchmarks
Mr Quigley also foreshadowed that, consistent with the ATOs practice in this area in recent years, the compliance program for 2010 / 11 would be coming up early in the new financial year.