We collect building industry supplier data as part of our pilot building industry data-matching project to identify and address non-compliance with tax obligations.
Data obtained for the building industry data-matching project includes:
- complaints information
- licensing information
- purchase information from building industry suppliers.
Data matching is one of the main indicators we use to detect businesses participating in the cash economy. Our objective is to promote a 'level playing field' that is fair for all, by making it harder to get away with not reporting cash income.
How we collect the data
We have obtained details of individuals or businesses that hold a trade account with purchases between $10,000 and $3 million in the 2009-10 financial year from a major Australian retail chain.
We have also obtained complaints and/or licensing information for the 2009-10 and 2010-11 financial years from:
- New South Wales Fair Trading
- the Queensland Building Services Authority
- the Government of South Australia's Consumer and Business Services.
How we use the data
Building industry data is used to pilot the approach of using supplier data to identify businesses in the building industry who use cash transactions to avoid their tax obligations or who fail to report some or all cash transactions.
We use the data to identify:
- individuals and businesses that may be running a part of their normal business activities off the books or operating underground by avoiding their obligations to register and lodge returns, particularly in relation to transactions between consumers and business
- risks and trends of non-compliant behaviour by individuals and businesses that operate in the building industry.
Where we identify taxpayers that appear to have not declared all, or part, of their income, we will either:
- write to them to notify them of the inconsistency and offering them the opportunity to review the amounts previously reported on their income tax or BAS returns and make a voluntary disclosure
- contact them directly through our compliance activities.
In cases where individuals or businesses fail to comply with their obligations - even after being reminded of them - other actions may be appropriate, including default assessments of tax liabilities.
Data-matching projects help protect honest taxpayers, by deterring, detecting and dealing with those who have not complied.
Last Modified: Thursday, 21 June 2012