META news: FIRB and ATO data matching

Mobility & Employment Tax Advisory (META) news brings you an article on Foreign Investment Review Board (FIRB) and Australian Taxation Office (ATO) data matching. The ATO will seek information from the FIRB in respect of land purchases in Australia to ensure compliance with Australia’s income tax and capital gains tax rules.

2015-05-12

However, this will be problematic where foreign investors have either not sought or did not believe that they required FIRB approval.


The data matching program will directly impact on your employees who are temporary visa holders and have purchased property in Australia.

Summary

The ATO will require details of foreign investors that have applied to the FIRB to purchase residential or agricultural land in Australia for the 2010-11 to 2015-16 financial years including:

  • the full name of applicants, address and country of usual residency
  • contact details (including address for service of notices in Australia)
  • date of birth
  • nationality, passport number and details
  • details of any land already owned by the individual purchaser, land area, title references, etc.


These records will be electronically matched with certain sections of ATO data holdings to identify non-compliance with registration, lodgment, reporting and payment obligations under taxation laws.

Similar data matching will occur for those purchasing property through companies and trusts.

Questions

Please contact us if you have any questions or want to discuss how we can provide an efficient and cost effective solution to your business.

If you would like to discuss this further, please contact Sam Morris.