Notice of a data matching program - Visa Holders - 2017-18, 2018-19 and 2019-20

Overview

The Commissioner of Taxation – Notice of a Data Matching Program (C2017G01373) was enacted in 2017 by the Australian Taxation Office (ATO) to address non-compliance with taxation and superannuation obligations among visa holders, sponsors, and migration agents. This initiative was introduced to bridge the gap in ensuring that individuals who have been granted visas, along with their sponsors and agents, adhere to their tax and superannuation obligations. The program aims to enhance the ATO's understanding of compliance risks within these populations, support the development of administrative strategies to address non-compliance, test and improve existing risk detection models, and identify new fraud methodologies. Additionally, it seeks to promote voluntary compliance through education and engagement, and ensure adherence to foreign investment rules. The data obtained from the Department of Immigration and Border Protection includes address and contact histories, visa details, and international travel movements, among other information.

Scope and Application

This legislation applies to the Australian Taxation Office (ATO) in their acquisition of data from the Department of Immigration and Border Protection regarding visa holders, visa sponsors, migration agents, and education providers for the financial years 2017-18, 2018-19, and 2019-20. The data to be obtained includes address and contact histories of visa applicants and sponsors, all visa grants, visa grant status, details of migration agents involved in visa applications, all international travel movements by visa holders, sponsor details, and the names of visa subclasses. The data will be matched with ATO data holdings to identify non-compliance with taxation and superannuation laws. The program aims to maintain currency of knowledge on risks, develop and implement administrative strategies, test and improve risk detection models, identify new fraud methodologies, improve the integrity of the taxation system, support foreign investment compliance activities, ensure compliance with taxation obligations, and promote voluntary compliance through education and engagement. The program has been prepared in consultation with the Office of the Australian Information Commissioner, with details available on the ATO website. The scope of this data matching program extends across the Commonwealth of Australia, applying to entities and individuals involved in visa processes, including holders, sponsors, migration agents, and education providers, with a national reach and no specified exclusions or exemptions.

Key Provisions

The primary sections of the legislation (C2017G01373) mandate that the Australian Taxation Office (ATO) will collect data from the Department of Immigration and Border Protection concerning visa holders, sponsors, and migration agents for the specified financial years (sections 1-2). This data includes address and contact history, visa details, migration agent information, and travel movements, aiming to identify non-compliance with taxation and superannuation laws (section 3). The collected data will be electronically matched with ATO's existing records to achieve the program's objectives, which include maintaining an updated understanding of risks, supporting compliance strategies, and identifying new fraud methodologies (section 4). The Act imposes several obligations on the parties involved. The ATO must ensure that the data matching process is conducted in accordance with the law and with due regard to privacy and security (section 5). The Department of Immigration and Border Protection is required to provide the necessary data as specified in the Act (section 6). Visa holders, sponsors, and migration agents must comply with all relevant taxation and superannuation laws and obligations (section 7). Additionally, the ATO must prepare a document describing the data matching program in consultation with the Office of the Australian Information Commissioner, and this document must be made publicly available (section 8). Breach of the obligations set out in this Act can result in both civil and criminal consequences. Individuals or entities found to be in non-compliance with taxation and superannuation laws may face penalties, which can include fines and interest on unpaid taxes (section 9). Additionally, the ATO has the authority to cancel the Australian Business Number (ABN) of ineligible registrants (section 10). For more serious breaches, criminal charges may be pursued, with penalties including substantial fines and imprisonment (section 11). The maximum penalties are specified in the relevant taxation and superannuation laws, but they can be significant, reflecting the importance of compliance with these obligations.