You would have heard media reports about an Australian Taxation Office (ATO) crackdown this year due to a ‘tax gap’ the ATO supposedly identified from reviewing random samples of tax returns. It is likely that many Australians subscribe to a similar view to the late Kerry Packer, who famously espoused in 1991 when he said,
“Of course I am minimising my tax and if anyone in this country doesn’t minimise their tax they want their heads read because as a government you’re not spending it that well that we should be donating extra.”
Since that statement was made, the ATO’s data collection and analysis capabilities have significantly increased to the point now that the ATO has possession of huge amounts of taxpayers’ raw financial and other data they use to data match. So, the biggest question we are asked at this time of year is “What does the ATO know and what can it find out about me?”.