Blog Layout

ATO spotlight on visa holders, sponsors and migration agents
Liz Gibbs • January 29, 2018

The ATO has launched the latest round of their data-matching program to include all visa holders, visa sponsors and migration agents. It will request the records of approximately 20 million individuals for compliance purposes. Find out now if you're affected and what you can do to avoid a visit from the tax man.

Visa holders, sponsors and migration agents beware: the ATO has recently gazetted a notice indicating their intention to conduct a data-matching program. The ATO will request records of approximately 20 million individuals from the Department of Immigration and Border Protection for the years 2017 to 2020. Some of the information that will be handed over to the ATO includes:

  • address history for visa applicants and sponsors;
  • contact history for visa applicants and sponsors;
  • all visa grants;
  • visa grant status by point in time;
  • migration agents (visa application preparer who assisted or facilitated the processing of the visa);
  • address history for migration agents;
  • contact history for migration agents;
  • all international travel movements undertaken by visa holders (arrivals and departures);
  • sponsor details;
  • education providers (educational institution where a student visa holder intends to undertake their study); and
  • visa subclass name.

This rolling program has been continued year-on-year since data analysis in 2011 found support for the view that there was an elevated risk relating to non-compliance and fraud associated with the visa holding population. Previously, the data obtained was used in ATO risk detection models to select populations for investigation relating to tax return integrity, income tax and GST non-compliance and/or fraud. The program also aimed to improve knowledge of the overall level of compliance with taxation obligations by the relevant parties.

Specifically, the program in previous years was to ensure that visa holders, visa sponsors, and migration agents were:

  • completing correct tax returns and business activity statements;
  • meeting their registration, lodgement, reporting and payment obligations for PAYG withholding, fringe benefits tax (FBT) and superannuation guarantee; and
  • managing their tax obligations correctly.

The data-matching undertaken by the ATO is not perfect and is not sophisticated enough to be completely error free. According to the ATO, there may be times where discrepancy matching identifies a taxpayer as not reporting all of their income, but in fact they are reporting the income under another entity.

Before any administrative action is taken, relevant parties will have the opportunity to verify the accuracy of the information obtained by the ATO and will generally be given at least 28 days to respond.

The data obtained from the program may also be used to ensure compliance with other taxation and superannuation obligations, including registration requirements, lodgment obligations and payment responsibilities. The ATO will escalate cases for prosecution where taxpayers fail to comply with obligations after being reminded of them.

Are you affected?

How does this all affect you? If you're a visa holder, visa sponsor or a migration agent, you should ensure that all your tax and payment obligations are up-to-date. The ATO notes that where a taxpayer has met their tax obligations correctly, the use of this data will reduce the likelihood of any ATO contact. So if you want to avoid getting caught in the net, contact us today.

Call us at Robert Goodman Accountants on 07 3289 1700 or email us at 
© Copyright 2018. All rights reserved. Source: Thomson Reuters.   Brought to you by Robert Goodman Accountants.
 
Office open
By Liz Gibbs March 10, 2025
With thanks to all Energex and Emergency services Crew, our electricity has been reconnected and our office is open from today 11 March. We hope you and your loved ones are safe and well following cyclone Alfred. These past few days have been challenging for many, and our thoughts are with everyone affected.
By Liz Gibbs March 10, 2025
Due to a power outage affecting the entire Samford area, the RGA Practice will be operating remotely today, 10 March, until electricity is restored. Please be assured that our team remains available and can be reached at 07 3289 1700. We appreciate your understanding and support during this time. Stay safe, and we look forward to seeing you soon.
Cyclone Alfred
By Liz Gibbs March 5, 2025
As Tropical Cyclone Alfred approaches, we want to remind everyone to take necessary precautions and ensure their safety. We have received some important information that we believe is crucial to share with you to help you prepare for the severe weather conditions ahead.
Work Health and Safety (Sexual Harassment) Amendment Regulation 2024
By Liz Gibbs February 26, 2025
In a significant move to combat workplace sexual harassment, Amendments to the Work Health and Safety Regulation 2011 (as per the Work Health and Safety (Sexual Harassment) Amendment Regulation 2024) will soon commence on 1 March 2025.
By Liz Gibbs February 25, 2025
The amount of money that can be transferred to a tax-free retirement account will increase to $2m on 1 July 2025.
What happens to your super when you die?
By Liz Gibbs February 25, 2025
The Government has announced its intention to introduce mandatory standards for large superannuation funds to, amongst other things, deliver timely and compassionate handling of death benefits. Do we have a problem with paying out super when a member dies?
By Liz Gibbs February 25, 2025
If credit card surcharges are banned in other countries, why not Australia? We look at the surcharge debate and the payment system complexity that has brought us to this point. In the United Kingdom, consumer credit and debit card surcharges have been banned since 2018. In Europe, all except American Express and Diners Club consumer surcharges are banned. And in Australia, there is a push to follow suit. But, is the issue as simple as it seems?
Babyboomer wealth
By Liz Gibbs February 25, 2025
“Succession planning, and the tax risks associated with it, is our number one focus in 2025. In recent years we’ve observed an increase in reorganisations that appear to be connected to succession planning.” ATO Private Wealth Deputy Commissioner Louise Clarke.
Penalty for False R&D claims
By Liz Gibbs February 25, 2025
A joint investigation involving the ATO found that, between 2014 and 2017, a Sydney business coach promoted unlawful tax schemes encouraging clients to lodge over-inflated, inaccurate or unsubstantiated research and development ('R&D') tax incentive claims
SMSF lodgement due dates
By Liz Gibbs February 25, 2025
All trustees of SMSFs with assets (including super contributions or any other investments) as at 30 June 2024 need to lodge an SMSF annual return ('SAR') for the 2023/24 financial year.
More Posts
Share by: