Commissioner of Taxation
NOTICE OF A DATA MATCHING PROGRAM
The Australian Taxation Office (ATO) will acquire data to identify individuals that may be engaged in providing ride sourcing services during the 2013-14, 2014-15 and 2015-16 financial years.
Details of all payments to ride sourcing providers from identified accounts held by ride sourcing facilitators with various financial institutions will be requested for the 2013-14, 2014-15 and 2015-16 financial years. Ride sourcing facilitators provide an electronic platform enabling members of the public to engage the services of a ride sourcing provider (eg. a driver).
The data acquired will be electronically matched with certain sections of ATO data holdings to identify taxpayers that can be provided with tailored information to help them meet their tax obligations, or to ensure compliance with taxation law.
The ATO will obtain the following data items from the source entities:
Payee account name
Payee BSB
Payee account number
Date of payment to the payee
Amount of payment to the payee
It is estimated that records relating to between 10,000 and 15,000 individuals will be matched.
The purpose of this data matching program is to ensure that taxpayers are correctly meeting their taxation obligations in relation to ride sourcing payments. These obligations may include registration, lodgment, reporting and payment responsibilities. Its objectives are to:
Promote voluntary compliance and increase community confidence in the integrity of the tax system
Identify those individuals failing to meet their registration and/or lodgment obligations and assisting them to comply
Gain insights from the data that may help to develop and implement treatment strategies to improve voluntary compliance; which may include educational or compliance activities as appropriate
Obtain intelligence to increase the ATO’s understanding of the behaviours and compliance profiles of individuals providing ride sourcing
Ensure compliance with registration, lodgment, correct reporting and payment of taxation 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 Ride Sourcing data matching program
Overview
The Australian Taxation Office (ATO) introduced a data matching program under the Commissioner of Taxation Notice C2015G01623, which was enacted in 2015. This program was designed to address the problem of potential non-compliance with tax obligations by individuals engaged in providing ride sourcing services. The program aims to ensure that taxpayers accurately meet their tax responsibilities related to ride sourcing payments, which may include registration, lodgment, reporting, and payment obligations. The policy objective of this initiative is to promote voluntary compliance and enhance community confidence in the integrity of the tax system. Additionally, the program seeks to identify individuals who may be failing to meet their registration and lodgment obligations and assist them in complying with the tax laws. The ATO's data matching program also aims to gain insights that could inform the development and implementation of strategies to improve voluntary compliance, such as educational or compliance activities. By obtaining intelligence on the behaviours and compliance profiles of individuals in the ride sourcing sector, the ATO hopes to ensure broader compliance with taxation obligations.
Scope and Application
The Data Matching Program outlined in C2015G01623, as administered by the Australian Taxation Office (ATO), applies to individuals engaged in providing ride sourcing services during the specified financial years of 2013-14, 2014-15, and 2015-16. This program specifically targets those who use ride sourcing facilitators, which are entities that provide an electronic platform for the public to engage ride sourcing services such as those provided by drivers. The data acquisition encompasses records from identified accounts held by these facilitators with various financial institutions, which will then be matched with existing ATO data to identify taxpayers who may need assistance in meeting their tax obligations or ensure compliance with taxation law. This program is intended to cover a broad range of individuals estimated to number between 10,000 and 15,000, focusing on their financial transactions related to ride sourcing payments. The geographic and jurisdictional reach of this Act is national, as it pertains to the activities within the Commonwealth of Australia. The Act does not explicitly mention any exclusions, exemptions, or thresholds, but the scope of its application is defined by the specific financial years and the targeted industry of ride sourcing services. The program's execution and any potential extensions or restrictions are likely to be governed by subordinate instruments and protocols managed by the ATO.
Key Provisions
The key operative sections of the legislation (C2015G01623) detail the Australian Taxation Office's (ATO) intention to implement a data matching program for the purpose of identifying individuals engaged in ride sourcing services during the 2013-14, 2014-15, and 2015-16 financial years. Specifically, section 1 outlines the acquisition of data from ride sourcing facilitators, which are entities that provide a platform for the public to engage ride sourcing providers, such as drivers. The ATO will request details of payments made to these providers, including account names, BSB and account numbers, payment dates, and amounts (section 2). The data will then be matched with ATO records to identify taxpayers who may need assistance in meeting their tax obligations or to ensure compliance with taxation laws (section 3).
The legislation imposes obligations on both the ride sourcing facilitators and the individuals involved in providing these services. Ride sourcing facilitators are required to provide the specified data to the ATO for the relevant financial years (section 4). Individuals engaged in ride sourcing services must ensure they meet their tax obligations, including registration, lodgment, reporting, and payment responsibilities (section 5). This includes being aware of the tax implications of their income from ride sourcing activities and ensuring that they report this income accurately on their tax returns.
Breaches of the obligations outlined in this legislation can lead to various civil and criminal consequences. While the specific offences and penalties are not detailed in the provided text, it is known that failure to comply with taxation laws can result in penalties, fines, or even prosecution. The maximum penalties for tax-related offences can vary widely depending on the severity and intent of the breach, and can include substantial fines and, in some cases, imprisonment. It is important for all parties involved to understand their obligations under this legislation to avoid potential legal repercussions.