If you are one of the unlucky ones to receive the ATO’s “data matching” letters, you better act now or you may end up thousands of dollars out of pocket.
This is the ATO’s way of making sure that any important information like shares or properties sold hasn’t been left off tax returns. It’s part of their push to raise more than $1 billion in revenue by checking all the dodgy claims.
What this means is that the ATO is going through old tax returns and doing some data-matching with third parties and have decided that if something on the return is incorrect, they send out a letter. Once that letter arrives, the clock starts ticking.
If you are not able to explain the flagged income or deduction, the ATO will determine whether or not to impose a financial penalty based on if you actually took reasonable care when completing your original tax return.
So, if you receive this letter, do not stick it in the back of the drawer and hope it blows over. Sort it out as soon as possible to avoid any financial complications.
If you do have any questions regarding this letter, please call us on (07) 3806 4484 or email us at gday@hannans360.com.au.
