As the Australian Taxation Authority find small and large ways people avoid declaring their income or fudging expenses, then they create law that allows then to peek into things by having the taxpayer report to them directly on income or expenses.
Our attitude is that if we and our clients are all reporting taxes correctly, then so should everyone else.
The sharing economy has grown significantly over recent years. The ATO see a risk that some sellers that use these platforms are not reporting their full income or paying the right amount of tax.
Key players in the sharing economy include Airbnb, Uber and Lyft.
New legislation now required electronic platforms to provide information on transactions made through the platform to the ATO. That is to say the ATO is plugging into the share economy providers to know what each user makes.
That’s a lot of data and information to handle.
