Commissioner of Taxation
NOTICE OF A DATA MATCHING PROGRAM
The Australian Taxation Office (ATO) will acquire details of entities collecting and distributing music royalty payments for the 2011, 2012 and 2013 financial years from the following sources:
- Australasian Performing Right Association (APRA)
- Australasian Mechanical Copyright Owners Society (AMCOS)
- APRA New Zealand Limited
- AMCOS New Zealand Limited
It is estimated that records for more than 15,000 entities will be obtained, of which most will be individuals.
These records will be electronically matched with certain sections of ATO data holdings to identify non-compliance with registration, lodgment, reporting and payment obligations under taxation laws.
This program is called the music industry royalty payments data matching program and its purpose is to detect and deal with non-compliance with taxation and superannuation obligations within this industry. Its objectives are to:
- Develop a profile of the industry, including any risks and trends of non-compliance with taxation and superannuation obligations
- Tailor educational strategies specifically for participants in the music industry
- Identify cases for lodgment enforcement activities
- Detect instances of potential non-compliance, especially with:
omitted income
alienation of personal services income (i.e. passing income through an interposed entity to minimise tax payable on income derived from personal exertion)
- Ensure compliance with other registration, lodgment, correct reporting and payment of taxation and superannuation obligations
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
- by sending an email to SpecialPurposeDataSteward@ato.gov.au with reference to the music industry royalty payments data matching program.
The ATO complies with the Office of the Australian Information Commissioner’s Guidelines on data matching in Australian government administration (2014) which includes standards for data matching to protect the privacy of individuals. A full copy of the ATO’s privacy policy can be accessed at www.ato.gov.au/privacy
Overview
The Commissioner of Taxation has announced a data matching program specifically targeting entities involved in the collection and distribution of music royalty payments for the financial years 2011, 2012, and 2013. This program, known as the music industry royalty payments data matching program, is designed to enhance compliance with taxation and superannuation obligations within the music industry. The Australian Taxation Office (ATO) will obtain details from key industry bodies such as the Australasian Performing Right Association (APRA), Australasian Mechanical Copyright Owners Society (AMCOS), APRA New Zealand Limited, and AMCOS New Zealand Limited. Expected to cover over 15,000 entities, predominantly individuals, the program aims to develop a comprehensive profile of industry risks and trends in non-compliance, tailor educational strategies, identify cases for enforcement, and detect instances of potential non-compliance, particularly with omitted income and alienation of personal services income. The initiative is governed by the ATO's adherence to the Office of the Australian Information Commissioner’s Guidelines on data matching, ensuring privacy protections are upheld.
Scope and Application
The Australian Taxation Office’s data matching program for music industry royalty payments applies to entities involved in the collection and distribution of music royalties, including individuals and organisations, for the financial years 2011, 2012, and 2013. This program encompasses data from various music royalty associations such as APRA, AMCOS, APRA New Zealand, and AMCOS New Zealand. The geographic scope of this program is nationwide, targeting entities across Australia. Its purpose is to identify and address non-compliance with registration, lodgment, reporting, and payment obligations under Australian taxation laws. This initiative is designed to develop a comprehensive profile of the music industry, tailor educational strategies, and enforce compliance with taxation and superannuation obligations, particularly focusing on omitted income and the alienation of personal services income. The ATO adheres to the Office of the Australian Information Commissioner’s Guidelines on data matching to ensure the privacy of individuals is protected. Information regarding the program and the ATO’s privacy policy is accessible on the ATO's website or via email request.
Key Provisions
The primary sections of the Notice of the Data Matching Program (section 1) outline the acquisition of data from specified music royalty collection entities, namely the Australasian Performing Right Association (APRA), the Australasian Mechanical Copyright Owners Society (AMCOS), APRA New Zealand Limited, and AMCOS New Zealand Limited. These records pertain to the 2011, 2012, and 2013 financial years, involving over 15,000 entities, predominantly individuals. This data will be matched with existing Australian Taxation Office (ATO) records to identify non-compliance with taxation and superannuation obligations under the relevant laws. The key aim of this data matching program is to develop an industry profile, tailor educational strategies, identify instances of non-compliance, and ensure adherence to registration, lodgment, reporting, and payment requirements.
Entities and individuals governed by the Notice must ensure they meet the outlined compliance requirements, including accurate registration, timely lodgment of tax returns, correct reporting of income, and payment of applicable taxes and superannuation contributions. The ATO's program seeks to tailor educational initiatives to the specific needs of the music industry, aiming to enhance awareness and understanding of taxation obligations among participants. By participating in this data matching program, entities are expected to proactively address any discrepancies or potential non-compliance issues that may arise.
Failure to comply with the taxation and superannuation obligations, as identified through the data matching program, may result in enforcement actions by the ATO. Potential outcomes include penalties for non-lodgment, underpayment, or incorrect reporting of income, which can lead to financial penalties. Additionally, severe cases of non-compliance, such as deliberate evasion or fraud, may result in criminal charges. The Notice does not specify exact penalties but indicates that the ATO will pursue legal action in accordance with the relevant taxation and superannuation legislation, which may include fines and imprisonment for serious offences.
In summary, the Notice mandates the acquisition and matching of data from specified music royalty collection entities to ensure compliance with taxation and superannuation laws. It imposes obligations on entities and individuals to accurately report and pay taxes and superannuation contributions. Breaches of these obligations may result in financial penalties, enforcement actions, and potential criminal charges, depending on the severity and intent behind the non-compliance.