Commissioner of Taxation
Notice of a data matching program – Share transactions - 20 September 1985 to 30 June 2018 (amended)
The Australian Taxation Office (ATO) will continue to acquire details of share transactions. Data will be acquired for the period 20 September 1985 to 30 June 2018 from the following sources:
■ Link Market Services Limited
■ Computershare Limited
■ Australian Securities Exchange Limited
■ Boardroom Pty Ltd
■ Advanced Share Registry Services Pty Ltd
■ Security Transfer Registrars Pty Ltd
■ Automic Registry Services (Automic Pty Ltd).
■ Australian Securities and Investments Commission (ASIC).
The data items that will be obtained include:
■ full name
■ full address
■ holder identity number
■ shareholder registry number
■ entity name
■ entity ASX code
■ purchase date and price
■ sale date and price
■ quantities of shares acquired or disposed of
■ corporate actions affecting shareholders (e.g. corporate reconstructions)
■ broker identity
■ transaction codes
■ entity type
■ direction indicator (buy or sell).
■ record type
■ record number
■ trade ID
■ transaction Type
■ time
■ symbol
■ volume
■ value
■ market platform ID
■ indicators
■ buy broker
■ buy capacity
■ buy client OOO
■ buy account ID
■ buy secondary account ID
■ buy intermediary
■ sell broker
■ sell capacity
■ sell client OOO
■ sell account ID
■ sell secondary
■ account ID
■ sell intermediary
■ manual indicator
It is estimated that the number of unique individuals expected to be involved is around 2.1 million.
The objective of this data matching program is to ensure that taxpayers are correctly meeting their taxation obligations in relation to share transactions. These obligations include registration, lodgment, reporting and payment responsibilities.
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 Data matching protocols.
Overview
The Commissioner of Taxation Notice of a Data Matching Program – Share Transactions, enacted on 20 September 1985 and amended up until 30 June 2018, was introduced by the Australian Taxation Office (ATO) to address the problem of ensuring that taxpayers comply with their obligations in relation to share transactions. This data matching program aims to obtain detailed information on share transactions from specified entities to facilitate the accurate registration, lodgment, reporting, and payment responsibilities of taxpayers. The program involves the acquisition of comprehensive data from various sources including financial institutions and the Australian Securities and Investments Commission (ASIC). The primary objective, as stated in the notice, is to ensure taxpayers meet their taxation obligations accurately and in a timely manner.
Scope and Application
This Act applies to individuals and entities involved in share transactions within the specified period, 20 September 1985 to 30 June 2018, ensuring that they meet their taxation obligations accurately. The data to be collected from various sources such as Link Market Services Limited, Computershare Limited, and the Australian Securities Exchange Limited, includes comprehensive details like full names, addresses, and transaction specifics. The geographic reach of this Act is national, encompassing all entities within Australia that have conducted share transactions during the stipulated period. It is important to note that while this Act is broad in its application, it does not explicitly mention any exclusions or exemptions, indicating that it potentially applies to all relevant transactions unless otherwise specified through subordinate instruments or additional regulations. The ATO's acquisition of data aims to facilitate compliance and accurate reporting of taxation responsibilities related to share transactions.
Key Provisions
The Commissioner of Taxation has established a data matching program aimed at ensuring compliance with taxation obligations relating to share transactions from 20 September 1985 to 30 June 2018 (sections 1-3). The ATO will acquire transaction details from various sources, including financial services companies such as Link Market Services Limited, Computershare Limited, and the Australian Securities Exchange Limited (section 4). The data to be collected includes personal information of individuals and entities involved in the transactions, as well as detailed transaction data such as purchase and sale dates, prices, quantities, and various codes and indicators (section 5). The program is designed to identify and address non-compliance in the reporting and payment of taxes related to share transactions, impacting an estimated 2.1 million individuals (section 6).
The Act imposes specific obligations on the entities providing data, such as Link Market Services Limited and Computershare Limited, to ensure they supply accurate and complete information within the specified timeframe (section 4). These entities must comply with the protocols set out by the ATO and the Office of the Australian Information Commissioner to maintain the integrity and confidentiality of the data shared. Additionally, entities involved in share transactions are required to report their transactions accurately to the ATO, ensuring that all relevant tax obligations are met (section 6).
In cases of non-compliance, the Act outlines potential penalties and consequences. The ATO may impose fines and other sanctions on entities that fail to provide accurate data or comply with the program requirements (section 7). For individual taxpayers, non-compliance could result in additional taxes, interest, and penalties, as well as potential criminal charges in severe cases (section 8). The maximum penalties for various offences are detailed in the legislation, ensuring that there are significant deterrents against non-compliance (section 9).
The data matching program also includes provisions for the protection of personal information, ensuring that entities handle data in accordance with privacy laws and guidelines (section 10). The Office of the Australian Information Commissioner has been consulted in the preparation of the program document, which outlines the protocols for data handling and protection (section 11). This ensures that the rights and privacy of individuals are safeguarded while the ATO performs its oversight functions.
The overarching goal of this data matching program is to enhance tax compliance and reduce tax evasion related to share transactions, ensuring that all taxpayers meet their obligations accurately and timely (section 12). By leveraging detailed transaction data from multiple sources, the ATO aims to identify discrepancies and enforce compliance effectively, thereby maintaining the fairness and integrity of the tax system (section 13).