It will come as no surprise that the ATO is data matching with Australian Insurance Companies looking for high valued items such as luxury vehicles, yachts, thoroughbred horses, fine art and aircraft and matching their ownership with ATO records.
Their aim is to match taxable income against high valued assets to determine if income has been understated. In other words, if you are found to own a $2m Riviera and are only showing a taxable income of $80K then you are going to get audited.
We understand that about 350,000 taxpayers are in the firing line and the ATO investigation will determine who is understating their income, made spurious GST credit claims or have not reported capital gains made on sold items.
The thresholds the ATO will be using for their investigation are as follows:-
Yachts with a value in excess of $100k
Vehicles with a value in excess of $65k
Horses with a value in excess of $65k
Fine art with a value in excess of $100k
Aircraft with a value in excess of $150k
If any of these apply to you you are on the ATO radar.