Own art yacht luxury car? The Australian Taxation Office and Insurance Company Investigate "Lifestyle Assets"
Rich Australians who pretend to be poor and evade tax will be targeted by the Australian Taxation Office (ATO), because the tax office will work with insurance companies to investigate their "lifestyle assets", including yachts, thoroughbred horses, exquisite artwork and Luxury cars and airplanes.
ATO revealed on Wednesday that it will investigate more than 30 insurance companies on insurance policies held by taxpayers to obtain detailed information on so-called "lifestyle assets" whose value exceeds a certain threshold, because the government tax department hopes to recover all legal taxes and debts owed. Of pension debt.
Approximately 35 taxpayers are facing this ATO survey, which will help the agency find out whose income may be underestimated, who misreported the GST credit, or who received capital gains from the sale but did not report it to the government. Affirm.
ATO Deputy Commissioner Deborah Jenkins said that compared to relying on income declared at the time of tax filing, taxpayer classification and cross-reference to assets such as private jets and yachts will help the agency establish a better taxpayer financial landscape.
"If taxpayers report $70,000 in taxable income to us, and we know they own a $300 million yacht, then this is likely to send some red flags," Ms Jenkins said.
"Regardless of your wealth level, all of us need to pay the correct amount of taxes, and this data will enable us to ensure that those who can afford such items do the right thing with others," she said.
"Things such as dishonest reporting of your income or non-declaration of capital gains are actually stealing from the community-this is the funds that the community has missed. This money was used to pay for schools, hospitals, roads, etc. The infrastructure and services that everyone depends on."
As part of the investigation, ATO will obtain information about yachts worth more than $100,000, cars and horses worth more than $65,000, artworks worth more than $100,000 and aircraft worth more than $150,000.
The threshold for a vehicle worth $65,000 is lower than the threshold for the luxury car tax, which is $2019 for the 20-67,525 fiscal year.
Generally speaking, taxpayers who confess before the ATO takes any action are expected to be punished with lower fines and interest charges.
"For high-value assets like art, the sale of these assets may yield some substantial capital gains, and may require capital gains tax on the sale or disposal of these items," Ms. Jenkins said.
"If we find that the goods and services tax (GST) credit has been incorrectly applied to goods purchased for personal reasons, we will follow up and seek full repayment in addition to applicable interest and fines."
The ATO’s fifth annual report on corporate tax transparency released last week showed that after the implementation of the new tax avoidance law in 2016, which forced multinational companies to reorganize their businesses, the government taxation department now levies an additional A$70 billion in sales income tax each year.
The ATO says that 92% of business groups voluntarily pay the highest "theoretical taxable amount." After the ATO launched compliance actions, this proportion rose to 96%. In contrast, this ratio is 94% for ordinary Australian taxpayers.