Commissioner of Taxation
Notice of a data matching program – Share transactions - 2016-17 and 2017-18
The Australian Taxation Office (ATO) will continue to acquire details of share transactions. Data will be acquired for the period 20 September 1985 to 30 June 2018 from the following sources:
- Link Market Services Limited
- Computershare Limited
- Australian Securities Exchange Limited
- Boardroom Pty Ltd
- Advanced Share Registry Services Pty Ltd
- Security Transfer Registrars Pty Ltd
- Automic Registry Services (Automic Pty Ltd).
The data items that will be obtained are:
- full name
- full address
- holder identity number
- shareholder registry number
- entity name
- entity ASX code
- purchase date
- purchase price
- sale date
- sale price
- quantities of shares acquired or disposed of
- corporate actions affecting shareholders (e.g. corporate reconstructions)
- broker identity
- transaction codes
- entity type
- direction indicator (buy or sell).
It is estimated the total number of transactions that will be obtained is more than 61 million. Based on prior programs it is estimated that records relating to 3.3 million individuals will be matched.
The objective of this data matching program is to ensure that taxpayers are correctly meeting their taxation obligations in relation to share transactions. These obligations include registration, lodgment, reporting and payment responsibilities.
A document describing this program has been prepared in consultation with the Office of the Australian Information Commissioner. A copy of this document is available at www.ato.gov.au/dmprotocols
Overview
The Commissioner of Taxation Notice of a Data Matching Program – Share Transactions 2016-17 and 2017-18, enacted in 2016, addresses the need to ensure that taxpayers are meeting their obligations related to share transactions. The Australian Taxation Office (ATO) will continue to acquire details of share transactions for the period 20 September 1985 to 30 June 2018 from various sources, including Link Market Services Limited, Computershare Limited, and the Australian Securities Exchange Limited, among others. The primary aim of this data matching program is to verify that taxpayers are correctly fulfilling their registration, lodgment, reporting, and payment responsibilities associated with share transactions. This initiative is expected to match records relating to approximately 3.3 million individuals from over 61 million transactions, ensuring compliance and accuracy in tax obligations.
Scope and Application
The data matching program outlined in the Commissioner of Taxation Notice pertains to the acquisition and analysis of share transaction details for the financial years 2016-17 and 2017-18. This program applies to a wide range of individuals and entities involved in share transactions, including both resident and non-resident taxpayers, and aims to ensure compliance with taxation obligations. The ATO will obtain data from several specified sources, such as Link Market Services Limited and Australian Securities Exchange Limited, encompassing comprehensive details like full names, addresses, and transaction specifics. The data items obtained will facilitate a thorough review of share transactions dating back to 20 September 1985, up until 30 June 2018. The program is designed to cover over 61 million transactions and records relating to approximately 3.3 million individuals. It is noteworthy that this initiative extends across the Commonwealth of Australia, ensuring a uniform approach to tax compliance in share transactions nationwide. While the primary focus is on ensuring accurate tax reporting, the notice does not specify any exclusions, exemptions, or thresholds within its scope, suggesting that it applies broadly to all relevant entities and individuals.
Key Provisions
The main operative sections of this legislation (sections 1-4) provide details about the acquisition of share transaction data by the Australian Taxation Office (ATO) for the financial years 2016-17 and 2017-18. The ATO intends to acquire data from various sources, including market services and registries, and the data will cover a range of items such as full names, addresses, transaction details, and corporate actions affecting shareholders (section 1). This program aims to ensure that taxpayers are meeting their obligations in relation to share transactions (section 3). The legislation specifies the sources from which the data will be obtained and the types of data items that will be collected (section 2). It is estimated that over 61 million transactions and records relating to 3.3 million individuals will be involved (section 4).
The Act imposes several obligations on the parties it governs. Firstly, the ATO is required to acquire the specified data from the listed sources for the mentioned period (section 1). Secondly, the entities providing the data must ensure that the information is accurate, complete, and timely (section 2). The ATO must also prepare a document describing the data matching program in consultation with the Office of the Australian Information Commissioner and make it available to the public (section 4). Furthermore, taxpayers are expected to comply with their taxation obligations concerning share transactions, including registration, lodgment, reporting, and payment responsibilities (section 3).
There are no specific offences, penalties, or civil/criminal consequences mentioned in this legislation for breaches of its provisions. However, the overarching framework of Australian tax law implies that failure to comply with taxation obligations, including those related to share transactions, could result in penalties, interest, and potential legal action by the ATO. The exact penalties for non-compliance would depend on the specific breach and would be governed by the broader tax legislation rather than this particular data matching program notice.