The ATO is retrieving records dating back to 2014 and comparing over 500 million records. The records that are being compared include price, time, quantity and full details of the individual share trades from information that they already have gained from share registries, brokers and exchanges.
By cross referencing this information the ATO is able to check if the correct tax obligations such as capital gains from the sale of shares has been added or losses claimed if applicable.
5 Million Australians Own Shares
With over 5 million Australians owning shares this information will help the ATO ensure that errors are kept to a minimum.
“Almost one third of all Australian adults own shares, and there is evidence that some taxpayers are getting it wrong when it comes to reporting their capital gains or losses from the sale of shares. In particular, we tend to see higher rates of error among those who don’t regularly trade in shares and who are not aware of the tax implications,” Assistant Commissioner Kath Anderson said.
Incorrect reporting of your tax obligations can result in penalties up to 75% of the value of the original tax. Keeping accurate documentation of your share transfers and trades including:
- records of share purchase
- sale prices
- costs like brokerage fees.
If you are selling part of your share parcel you need to also document the amount of shares you are still holding.
Need Help With Your Tax On Your Shares?
The team at HBG Tax & Accounting are your local accountants in Rockingham. Please feel free to give our office a call on 08 9594 1963 to make an appointment to discuss your exact situation and requirements.
The material and contents provided in this publication are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.
This article was written based on information supplied from Knowledge Shop Newsletter December 2018.