TaxBanter for March 2014 reminds taxpayers that it is important to advise of all sources of income in a given financial year, including sale of property, shares, interest earned, and dividends.
From 1 July 2014 the Government has created a new third party relationship to add to their current reporting regime that will encompass the following information being reported;
- Sale of real property
- Sales of shares and units in unit trusts
- Sales through merchant debit and credit services
- Taxable government grants and other payments
The Australian Taxation Office will be receiving the following information with respect to both the Vendor & Purchaser of any Sales of real property;
- Date of birth (individual only)
- ABN or ACN (for entities)
- Property address and ID
- Property type
- New Residential (for potential GST implications)
- Vacant Land
- Contract Date
- Settlement Date
- Consideration received/ paid
- Details of any other costs and charges available
As you can see the information that is being provided to the Australian Taxation Office is quite detailed therefore it is imperative that all income is discussed with us for a given financial year to ensure that all necessary income is being reported correctly in your tax returns.
Penalties will be imposed on taxpayers who do not include income reported via external parties of a proposed minimum of 25%.
This article was written by Elizabeth O’Connor, a Senior Accountant at our Burleigh Office. Elizabeth completed her Bachelor of Business at Griffith University and has been with us at Mckern & Associates for the past 7 years. Elizabeth enjoys family time and spending time with friends.