On 16 November, the ATO gazetted a notice indicating that it will undertake data matching program in respect of temporary visa holders in order to identify potential non compliance with Australia's taxation laws
This announcement should not come as a surprise as it follows on from:
- The ongoing Living Away From Home Allowance audits; and
- Verification of Medicare Levy Exemptions.
Clearly the Government and Treasury are concerned with revenue leakage and the ability to return the Budget to surplus as per the Government's prior year budget predications.
An overview of the Data Matching Measures
The ATO will request and collect the names, addresses and other details of entities who have applied for various temporary Visa subclasses between the period 1 July 2008 and 31 March 2011 from the Department of Immigration and Citizenship.
The Visas to be checked include:
- Subclass 457 visa (Business (Long Stay) visa) - this is for employers who would like to employ overseas workers to fill nominated skilled positions in Australia.
- Subclass 417 visa (Working Holiday visa) - this visa allows young people (aged between 18 to 30 years) to have an extended holiday in Australia supplemented by short term employment (no more than 6 months with the same employer) and study.
- Subclass 419 - this visa is for professional academics to visit Australia on a temporary basis, to observe or participate in an Australian research project at an Australian tertiary or research institution.
- Subclass 420 - this visa is for those who intend to work temporarily in Australia in the entertainment industry.
- Subclass 421 - this visa is for professional and amateur sportspeople, judges and adjudicators who want to come to Australia to participate in their field of sport.
- Subclass 428 - this visa provides for the temporary stay of persons who will be full-time religious workers in Australia.
- Subclass 442 (Occupational Trainee) - Temporary visa for persons undertaking a supervised and comprehensive training program of which at least 70% is workplace based; or post graduate supervised work experience for professional registration purposes
It will also apply in respect of Visa Subclasses 406,410, 411, 415, 416, 418, 420, 422, 423, 424, 426, 427, 462, 570, 571, 572, 573, 574, 575, 576 and 580.
The information provided by the Department of Immigration and Citizenship will be electronically matched and analysed with certain sections of ATO data holdings to identify potential refund fraud and other non compliance with lodgement and payment obligations under taxation law.
Records relating to individuals who applied for and were granted visas under the above subclasses will be matched.
This matching will be carried out in the second quarter of the 2011 year.
Source: http://www.ag.gov.au/portal/govgazonline.nsf/8DBDF189F90D363CCA25794A00105A85/$file/GN%2045.pdf
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