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Hi-tech cross-checking systems investigate declarations for inaccuracies or fraudulent deductions that can result in heavy fines for taxpayers

ATO gives grim warning to taxpayers who have submitted unreliable returns and promises to investigate ANY expense claim of the past year

  • ATO warns that it will use hi-tech systems to scan returns of the past year
  • Tax evasion costs the economy $ 8.7 million – some make fake websites and coupons
  • It comes as millions submit their claims after Scott Morison's tax compensation in July
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The Australian tax office has issued a grim warning to taxpayers who have submitted unreliable returns because they promise to investigate every expense claim for the past year.

Hi-tech cross-checking systems examine declarations for inaccuracies or fraudulent deductions, which can result in heavy fines for taxpayers.

Assistant Tax Commissioner Karen Foat said tax evasion costs the economy $ 8.7 billion annually in one ABC report on Friday, with some fraudsters creating fake websites, records and receipts.

Hi-tech cross-checking systems investigate declarations for inaccuracies or fraudulent deductions that can result in heavy fines for taxpayers

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Hi-tech cross-checking systems investigate declarations for inaccuracies or fraudulent deductions that can result in heavy fines for taxpayers

& # 39; We know some people think it's okay to claim their deductions a little bit too much. But our message is – that's not good, & she said to the ABC.

The cross-matching analysis – which has been updated for the 2019 tax season – detects that about two million people a year are contacted about claim deviations.

Inconsistencies that arouse suspicion include improbable work uniforms, the use of a private vehicle for work, data from third parties that disclose under-reported income and deductions that seem high compared to others with a similar job and level of income.

Ms. Float said that those contacted by the ATO will first be asked to validate declarations before starting an audit.

& # 39; Maybe we should have a more detailed overview. We understand that it can be frustrating to dig up old receipts and information, but it's necessary & # 39 ;, she told the ABC.

Although she says some underpayments are real mistakes, she urged intentional wrong doers to immediately & # 39; fessen & # 39; if they were caught.

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Tim Neilson, president of the tax institute, warned those facing an audit to seek professional help.

The warning comes when millions submit their tax returns after Scott Morison's tax settlement in July

The warning comes when millions submit their tax returns after Scott Morison's tax settlement in July

The warning comes when millions submit their tax returns after Scott Morison's tax settlement in July

& # 39; Navigating an audit can be tricky, so it is wise to have the expertise of a tax expert who has already followed this path, & # 39; he told the ABC.

The announcement led to outrage among Facebook users, who believe that the audit is poorly targeted at individuals above companies.

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& # 39; Still chasing the wrong people … what about some companies that owe billions? & # 39; posted a woman.

Mrs Float rejected the claims and insisted that money be injected into tax audits of large companies and multinationals.

In August, the results of an ATO survey showed that small businesses are one of the largest contributors to the tax gap that costs Australia more than $ 11 billion a year.

The warning comes as millions submit their tax returns after Scott Morrison's tax compensation in July.

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