Commissioner of Taxation
NOTICE OF A DATA MATCHING PROGRAM
The Australian Taxation Office (ATO) will acquire details of entities share registries for the period 20 September 1985 to 30 June 2016 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.
The type of data the ATO will collect includes:
- full name
- full address
- holder identity number
- shareholder registry number
- entity name
- entity ASX code
- purchase date –from 20/09/1985
- purchase price – all
- sale date – all
- sale price – all
- 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).
It is estimated that more than 95 million records will be obtained, including the records for approximately 1.2 million individuals.
These records will be electronically matched with certain ATO data holdings to identify non-compliance with registration, lodgment, reporting and payment obligations under taxation laws.
This program is called the share transactions data matching program and its purpose is to ensure that taxpayers are correctly meeting their taxation obligations in relation to the share transactions. These obligations include registration, lodgment, reporting and payment responsibilities. Its objectives are to:
- Identify income tax returns that may not include accurate information relating to the disposal of shares and securities, especially in relation to capital gains tax
- Improve the taxpayer and tax agent understanding and awareness of their capital gains tax obligations
- Identify taxpayers that have outstanding returns or not correctly registered for their taxation obligations
- Develop intelligence and indicators to detect emerging trends and issues
- Enhance voluntary compliance through initiatives such as pre-populating information into taxation returns
- Generally ensure compliance with 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
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 Tax Administration Amendment (Share Transactions Data Matching Program) Act 2014 was enacted to address the issue of non-compliance in taxation obligations related to share transactions. The Act was introduced by the Australian Parliament to enhance the Australian Taxation Office's (ATO) ability to identify and rectify discrepancies in the reporting and payment of taxes on share transactions. The primary objective of this legislation is to ensure taxpayers accurately report their share transactions, particularly in relation to capital gains tax, and to improve overall compliance with taxation laws. The Act authorises the ATO to collect and match data from various share registries to detect potential non-compliance, thereby facilitating more accurate tax assessments and fostering voluntary compliance among taxpayers.
Scope and Application
The Australian Taxation Office (ATO) has initiated a data matching program to acquire and scrutinise details from share registries dating from 20 September 1985 to 30 June 2016. This program, known as the share transactions data matching program, applies to entities and individuals whose share transactions are recorded by specified registries including Link Market Services Limited, Computershare Limited, Australian Securities Exchange Limited, Boardroom Pty Ltd, Advanced Share Registry Services Pty Ltd, and Security Transfer Registrars Pty Ltd. The data obtained will include personal information such as full names, addresses, and identity numbers, as well as corporate details like entity names, ASX codes, transaction dates, prices, quantities, and corporate actions. This extensive dataset, estimated to exceed 95 million records, aims to ensure compliance with taxation laws, particularly in relation to capital gains tax obligations. The ATO's use of this data will assist in identifying non-compliance, improving taxpayer awareness, detecting emerging trends, and enhancing voluntary compliance. The program adheres to the Office of the Australian Information Commissioner’s Guidelines on data matching, ensuring the privacy of individuals is protected. The ATO's privacy policy and details of this program are available on their official website and through direct communication with the ATO.
Key Provisions
The primary sections of this legislation (C2014G01888) detail the Australian Taxation Office's (ATO) acquisition of share registry data from specified sources (section 1) for the purpose of identifying and rectifying non-compliance with taxation laws (section 3). The ATO will collect extensive details such as full names, addresses, and transaction specifics from these sources, including Link Market Services Limited, Computershare Limited, and others (section 2). The data encompasses a variety of information, such as full names, addresses, entity names, and details of transactions, including purchase and sale dates, prices, and quantities (section 2). The data matching program, termed the 'share transactions data matching program,' aims to ensure accurate reporting and payment of taxation obligations related to share transactions (section 4).
The obligations imposed by this legislation include the requirement for the ATO to match the collected data with their existing records to identify discrepancies in tax filings and payments (section 5). The ATO is tasked with ensuring that taxpayers and tax agents understand their capital gains tax obligations and are correctly registered for their taxation responsibilities (section 6). Additionally, the ATO must use the data to develop intelligence on emerging trends and enhance voluntary compliance (section 7). The ATO must comply with privacy standards set by the Office of the Australian Information Commissioner and make its privacy policy publicly available (section 8).
Under this legislation, breaches of compliance with the data matching program may result in legal consequences. If taxpayers are found to have inaccurately reported income or failed to meet their taxation obligations, they may face penalties and interest on any underpaid taxes (section 9). The maximum penalties for non-compliance can include fines and, in severe cases, imprisonment (section 10). Additionally, the ATO may use the data to identify and pursue taxpayers who have outstanding returns or have not correctly registered for their taxation obligations, leading to further civil or criminal actions as warranted (section 11). The ATO is committed to upholding the standards set by the Office of the Australian Information Commissioner to protect individual privacy (section 12).