Online selling data matching

How we collect the data

We obtain data from various online selling sites to assess the level of taxation compliance of individuals and businesses that sell goods or services online.

The data identifies members of online selling sites who are involved in selling goods and services of a total value of $20,000 or greater in the 2010-11 financial year.

How we use the data

We use this data to improve compliance with tax obligations of particular groups of taxpayers. This allows us to:

• identify individuals and businesses that don't report, or under-report, their sales
• identify individuals and businesses that operate 'off the books' and avoid their obligations by not registering, lodging returns or making payments
• better understand and address the compliance behaviour of taxpayers involved in online selling
• increase community awareness of the ways we use data matching to address tax compliance
• protect honest taxpayers, by deterring, detecting and dealing with those who have not complied.

We will contact individuals and businesses that we identify as being at risk of running part of their business off the books or in other ways not reporting all their income. We will encourage them to make a voluntary disclosure of any under- reported amounts.

Where appropriate, the data will be used to support default assessments of a business's tax liabilities.

How we match the data

This data is electronically matched with our own data to identify individuals and businesses who are:

• participating in the cash economy
• non-compliant with registration requirements
• not reporting or under-reporting sales
• not meeting their lodgment and payment obligations under tax law.

For more information about your tax obligations as a small business operator, refer to Small business support (NAT 73320).