Data matching program targeting online sellers

The Commissioner of Taxation has stated in a recent Media Release that the Tax Office is launching a data matching program focusing on individuals and businesses which have sold more than $20,000 in goods and services on online selling sites, such as eBay and The Trading Post in any of the last three financial years.

According to eBay Australia, information has been provided to the Tax Office in compliance with its privacy policy. The requested information includes sellers' contact names, user names, phone numbers, duration of memberships and monthly sales turnover for the periods in question.

Taxpayers who run a business through online selling sites, or have an existing business and are making additional sales through these sites are required to include this income in their Business Activity Statement (BAS) and/or tax return.

According to the Commissioner, the data matching program intends to detect businesses that are under-reporting or not reporting income generated from these sources.  Records will be matched against different identifiers such as Tax File Numbers, Australian Business Numbers, addresses and date of birth.

Further, the Commissioner has also encouraged taxpayers who may have understated their taxable income in the last three years to make a voluntary disclosure.

To report any undeclared income, taxpayers can either:

• Make a voluntary disclosure in writing, electronically or by phone, or
• Lodge an amended tax assessment by completing the 'Request for amendment of income tax return for individuals' form
  

Moreover, a revised BAS can also be lodged by calling the Tax Office on 13 28 66 to obtain a revised statement, or through the Business Portal for registered users.