Overview

The Commissioner of Taxation Notice of a data matching program – Specialised Payment Systems 2014-17, enacted by the Australian Taxation Office (ATO) in 2016, was introduced to address non-compliance issues related to registration, lodgment, reporting and payment obligations under taxation laws. This initiative aims to ensure accurate and timely compliance with taxation obligations by matching data from specialised payment systems with ATO data holdings, thereby promoting voluntary compliance and increasing public awareness of data matching practices. The program protocol was prepared in consultation with the Office of the Australian Information Commissioner, and a copy of the document is available on the ATO's website. The overarching policy objective is to enhance the ATO's intelligence about businesses, enabling broader risk, trend and strategic analysis.

Scope and Application

The Commissioner of Taxation Notice of a data matching program – Specialised Payment Systems 2014-17 applies to both individual and entity merchants who use specialised payment systems to process electronic payments during the specified financial years. This includes a wide range of industries and businesses that engage in transactions using such systems. The geographic reach of this legislation is national, as it pertains to the Commonwealth level, thereby affecting entities and individuals across Australia. The program aims to obtain personal details of the merchants and transaction data to ensure compliance with various taxation obligations, including registration, lodgment, reporting, and payment requirements. While the scope is extensive, the program is designed to specifically target non-compliance and promote voluntary adherence to taxation laws. The exclusions, exemptions, or thresholds are not explicitly stated in the notice, but the data collection process is detailed in a protocol document available on the ATO website. This program may be extended or further defined through subordinate instruments as needed.

Key Provisions

The primary sections of this Notice, specifically sections 1 to 4, delineate the scope and purpose of the data matching program. Section 1 identifies the acquisition of electronic payment data from specialised payment systems for the financial years 2014-15, 2015-16, and 2016-17. Section 2 specifies the data items to be collected, including personal details of merchants and the transactional details of payments processed. Section 3 outlines the estimated number of entities affected, which includes around 300,000 entities, with approximately 50,000 being individual entities. Section 4 details the purpose of the program, which is to ensure compliance with taxation obligations, promote voluntary compliance, and assist the ATO in building intelligence about businesses. The obligations imposed by this Notice on the parties involved are primarily those of the merchants and the specialised payment systems. Merchants using these systems must ensure that they are compliant with all registration, lodgment, reporting, and payment obligations under taxation laws. The specialised payment systems, which act as data providers, are obligated to supply the required data to the ATO as per the terms of the program. Additionally, the ATO is required to match this data with its existing holdings to identify and address non-compliance. The Notice also mandates that a document describing the program be prepared and made available to the public, as outlined in Section 5. Failure to comply with the requirements of this Notice may result in various civil and criminal consequences. While the Notice does not specify particular offences, breaches of taxation laws, such as failure to register, lodge, report, or pay taxes correctly, can lead to penalties. These penalties can include fines, interest on unpaid taxes, and in severe cases, prosecution. The maximum penalties for tax offences can vary widely depending on the nature and severity of the breach, and can include substantial fines and, in some cases, imprisonment. It is essential for merchants and payment system providers to ensure compliance to avoid these potential consequences.