We get it, the weather’s cooling down, and Snapper season is just around the corner. So why not look at using your business to invest in that fishing yacht you’ve had your eye on?

Sorry to be the fun police, but here’s some news from the ATO:

The ATO has recently announced it will use information from insurance agencies as part of its compliance profiling activities.

If you’re reporting an $80,000 taxable income, but you also own a multi-million dollar yacht, this is likely to raise some red flags for the ATO. In addition, the data will also help provide the following:

  • Identify taxpayers who have made capital gains on the disposal of certain assets but have not declared this to the ATO

  • Identify incorrect claims for GST input tax credits where taxpayers are incorrectly claiming GST credits as if the private item was a business asset

  • SMSF’s that the ATO suspects may be acquiring lifestyle assets purely for the personal enjoyment of the fund’s trustee or beneficiaries.

Insurers are required to provide the ATO with detailed policy information where the value of assets is equal to or exceeds the following thresholds:

  • Marine vessels $100,000

  • Motor vehicles $65,000

  • Thoroughbred horses $65,000

  • Fine art $100,000 per item

  • Aircraft $150,000

If you feel that you have failed to comply with these taxation or superannuation obligations, the team at Greenhalgh Pickard can provide you with the correct advice and course of action.