TAX NEWS - 2010

Tax watch on tradies

Truckies, mechanics and electricians be warned, the tax office has you in its crosshairs as this year's tax targets.

False refund claims, the cash economy, wealthy Australians and tax havens will also be targets, along with bosses who have dudded more than 17,500 workers out of their super payments.

Tax Commissioner Michael D'Ascenzo released the latest Australian Taxation Office compliance program, warning this year it would "data-match" a record 500 million-plus banking, property, credit, investment and government transactions as it double-checked tax returns. Industries already showing a "pattern of non-compliance" included road freight transport, automotive repairs and electrical services, Mr D'Ascenzo said.

"Claims outside normal individual or industry ranges will result in all aspects of the person's tax being reviewed," he said.

Some of the most common mistakes include insufficient documents to support vehicle and travel expenses, and incorrect claims for home office, mobile phones and internet use.

Employers are also in the gun to ensure they are making their tax and super payments on behalf of workers.

"This year we expect to take action on more than 17,500 employee complaints about unpaid super," the commissioner said.

Last year the ATO compliance program resulted in it amending almost 300,000 individual tax returns, with a further 200,000 people voluntarily changing their returns.

An extra $55 million tax was raised from audits of "high-risk" refunds, $72 million extra from fraudulent refund claims; $102 million from audits of company directors and $232 million from data-matching audits.