Wealthy Australians who are hiding their wealth from the ATO may soon be uncovered by new data matching plans - image

Wealthy Australians who are hiding their wealth from the ATO may soon be uncovered by new data matching plans

Wealthy Australians uncovered

The Tax Office has announced that it has partnered with insurance providers to identify Australians with policies that cover an expanded range of asset classes.

Coming under its net are insurance policies that include cover for damage or loss related to marine, aviation, enthusiast motor vehicles, fine art and thoroughbred horses.

Purpose of data matching

The Tax Office declares that it uses data matching to identify the hidden and undeclared wealth, and that this information will be used by it to get a more accurate estimate of the true wealth of individual taxpayers.

Formal notices will be issued

The ATO has issued and will issue formal notices to insurers to provide it with these policy details.

The ATO has also circulated information for tax professionals, notifying them of its intentions about matching data to insurance records.

The ATO expects to receive around 100,000 records where the different asset classes meet certain threshold amounts.

If you have any tax queries, please call our tax consultants at W Wen & Co and they are more than happy to assist you