• Tax Alert: Tax Office announces expatriate data matching program

In addition to recent moves by the Government to restrict the use of temporary skilled visas such as the popular subclass 457 visa, the Commissioner of Taxation has recently announced that the Tax Office will undertake a widespread data matching program of temporary visas to ensure tax compliance of individuals working in Australia on these visas.

The Department of Immigration will provide approximately 1,000,000 names, addresses and other visa details to the Tax Office to enable them to undertake the data matching program. This information will be electronically matched and analysed against Tax Office data to identify potential fraud and other non-compliance. The Tax Office may also reciprocate and provide information to assist the Department of Immigration to maintain visa integrity.

Grant Thornton comment

We see this program as posing a significant risk to many of our clients who utilise international talent. We would actively encourage our clients to undertake a detailed compliance review of their processes affecting their expatriates from both an immigration and taxation perspective.