The ATO have announced that they will be extending their tax avoidance investigations into ‘lifestyle assets’ with their data-matching program. The program will collect and analyse data on insurance policies from the 2014 financial year onwards for any life styles assets including - marine vessels, motor vehicles, thoroughbred horses, fine art and aircrafts that are above specific asset values.
In summary the ATO will be looking to identify if taxpayers:
Your insurance provider can notify you if you have been selected as a participant in this program and their privacy policies should be updated to note that personal information can be disclosed to the ATO for data-matching purposes. While an audit on your insurance policy may not be used to initiate automatic compliance activity it may prompt enquiry from an ATO compliance officer.
Please feel free to contact our office with any queries on lifestyle assets.