Notice of a Data Matching Program - Specialised Payment Systems

Overview

The Commissioner of Taxation Notice of a Data Matching Program (C2014G01708) was enacted in 2014 and addresses the problem of ensuring a level playing field for businesses that comply with tax obligations by identifying those that may be evading their tax responsibilities. This initiative was introduced by the Australian Taxation Office (ATO) with the policy objective of protecting compliant businesses from unfair competition and enhancing the accuracy of identifying businesses that operate in a manner potentially non-compliant with tax laws. The Specialised Payment Systems Data Matching Program collects data from various payment service providers to match against ATO records, affecting over 25,000 individuals. The ATO ensures compliance with privacy standards set by the Office of the Australian Information Commissioner, and details of the program are available to the public to maintain transparency and accountability.

Scope and Application

The Specialised Payment Systems Data Matching Program, as notified by the Commissioner of Taxation, applies to various specialised payment system entities listed in the notice, including Ausfit Pty Ltd, Australia and New Zealand Banking Group Limited, and others. The program specifically targets the collection of data relating to electronic payments made to businesses through these systems for the financial year 2013-2014. The collected data will be matched with the ATO's existing data holdings, including third-party data, to ensure compliance and fairness among businesses, aiming to identify those who may not be meeting their tax obligations. This program is intended to create a more level playing field for businesses that adhere to their tax responsibilities by identifying potential non-compliant entities for corrective measures. The ATO’s compliance with the Office of the Australian Information Commissioner’s Guidelines ensures the privacy of individuals is protected throughout the data matching process.

Key Provisions

The Specialised Payment Systems Data Matching Program (sections 1-3) involves the Australian Taxation Office (ATO) collecting and matching data from specified entities for electronic payments made to businesses from 1 July 2013 to 30 June 2014. These entities include major payment processors and banks, such as Australia and New Zealand Banking Group Limited, Commonwealth Bank of Australia, and others. The program aims to ensure a level playing field for businesses that meet their tax obligations by identifying those that may not be complying. It also seeks to more accurately identify businesses operating in cash-only environments, which could be using alternative techniques to avoid tax obligations. Under this legislation, the ATO is required to request data from the specified entities, which must then provide this information as mandated by the Act (section 4). The entities involved have an obligation to cooperate with the ATO’s data requests and ensure the accuracy and completeness of the data provided. The ATO is also required to match this data with its own holdings, including third-party data, to identify any discrepancies or non-compliance by businesses (section 5). Both the ATO and the data providers must adhere to privacy guidelines established by the Office of the Australian Information Commissioner to protect individual privacy (section 6). The legislation does not explicitly outline specific offences, penalties, or civil/criminal consequences for non-compliance with the data matching program. However, failure to provide the requested data or inaccuracies in the data provided could result in the ATO taking corrective actions against the businesses involved. These actions may include audits, investigations, and potential penalties for non-compliance with tax obligations. The ATO’s privacy policy and the Office of the Australian Information Commissioner’s Guidelines ensure that any misuse of data or breaches of privacy are subject to appropriate sanctions. While the legislation does not detail maximum penalties, breaches of privacy and non-compliance with tax obligations can lead to significant legal and financial consequences for the businesses involved.