The ATO use information provided by third parties to help ensure tax returns are complete and accurate.
Your client may receive a letter from them if our data matching indicates they sold or disposed of a property which may have resulted in a capital gain or loss, and:
- they didn’t report a capital gain or loss in their tax return, or
- the capital gain or loss they reported differs from the information they hold.
If your client receives a letter, refer to the guidance available on the ATO website to help with your next steps. Review your client’s records and, if necessary, lodge an amendment to correct their tax return for the affected income year.