The Tax Office has begun to investigate whether people using "low doc" (or low documentation) loans are likely to have tax compliance issues. Of around 350 taxpayers selected for review, it was found that about 50% had not lodged returns; the average was three years outstanding.
Tax Office checks for concealment of income have raised over $23 million in tax and penalties.
It is expected that in 2006 the ATO will:
|Check the lodgement status of people obtaining low doc loans|
|Explore matching insurance company records with tax returns as most low doc loans are subject to mortgage insurance.|