Tax Alert // Lifestyle assets data matching program
The ATO will obtain information on insurance policies for certain classes of assets, including marine vessels, enthusiast motor vehicles, thoroughbred horses, fine art and aircraft. The information will cover the 2013-14 and 2014-15 financial years in respect of the following classes of assets:
- Marine vessels valued over $100,000
- Enthusiast motor vehicles valued over $50,000
- Thoroughbred horses valued over $65,000
- Fine art valued over $100,000 per item
- Aircraft valued over $150,000
The ATO anticipates obtaining records of more than 100,000 policies, many of which will be held by individuals, and it will identify specific tax risks, including:
- Asset betterment – where taxpayers acquire or improve expensive assets without the visible income to show how they have paid for it
- Income tax and capital gains – where taxpayers disposing of assets have not declared the income and/or capital gains
- GST – where taxpayers have purchased assets for personal use through their business or related entities and claimed input tax credits they are not entitled to
- FBT – where taxpayers have purchased assets through their business entities, but apply those assets to the personal enjoyment of an associate or employee giving rise to an FBT liability
- Superannuation funds – where self-managed superannuation funds have acquired assets but the fund’s trustees or beneficiaries have used them for their own benefit