The ATO’s compliance program for the 2010-11 income year will focus on:

Sourced from: Platinum Accounting & Taxation

Remuneration of Executives and Directors

The ATO will focus on shares and options received by foreign directors/executives of Australian companies or Australian directors/executives of foreign companies to ensure that such remuneration is reported correctly.

The focus will be on public and private companies, and resident and foreign directors and executives.

High income taxpayers

The ATO will focus on taxpayers with income exceeding $1 million, with increased focus on alienation of personal services income and large deductions or credits.

Unregistered tax return preparers

There will be a focus on tax returns prepared by unregistered preparers claiming to be tax agents.

Third party information

The use of third party information to identify taxpayers that have under-reported income or over reported entitlements will be expanded.

Investment income

The focus will be on investors to ensure that rent and dividends are correctly reported as income, rental deductions are not over-claimed and capital gains are appropriately recorded.

Work-related expenses

The appropriate claiming of work related expenses, including motor vehicle and travel expenses, home office, mobile phone and internet expenses will be a focus for the ATO.

Deductions claimed by specific industry sectors

Specific fact sheets to assist engineers, mechanics and teachers in correctly claiming their expenses have been released.

Superannuation contributions

The ATO will check all requirements in relation to the lodgment of a valid notice of intent to claim or vary a deduction for personal super contributions.

The ATO will also undertake data matching exercises to ensure that deductions for personal super contributions are appropriately claimed.

Superannuation withdrawal

There will be a focus on individuals that may have illegally accessed their super benefits ahead of time.

Internet trading

The ATO is focusing on trades conducted via the internet (including on trading sites such as ebay) to identify taxpayers that may have understated their business income.

TIP: Although the ATO is targeting the specific areas mentioned here, this does not mean they will not be looking at other areas too.

 

For further informative information for all types of tax queries, have a look at the Tax Payers Association.