Can the ATO and banks view your accounts?

[smallbuyer]

Hello,

Does anyone know if the tax departments or banks can view your accounts online (like you view internet banking, transaction history and balances). Obviously banks can view your accounts with them i mean is their any way they can view your accounts with other banks?
I know for example when you apply for a loan or credit card you sign some sort of privacy waiver, does this give the bank the right to do this?
Obviously the ATO/Centrelink etc can get these records but surely their is a process (a court order?) they cant just snoop?

A friend was telling me he was watching a show (7.30 report. ACA?) where the people (ATO/Banks/Centrelink??? he was a bit unclear) were simpily and easily accessing peoples accounts to check if they where telling the truth which is a bit concerning if its that easy they could just be snooping about anything.

Watch out big brother is watching you!

Cheers,

Smallbuyer

 

[PHF]

Yes the ATO can very easily view your account details, have been for years. Its just the amount of information and the ease of analysing it that has increased.
The ATO recently announced that it will begin analysing the EFTPOS sales of certain retailers and comparing this with the sales reported in that businesses tax returns.
With this kind of power, you can bet the ATO can easily check the interest deduction you are claiming against your rental properties.
I'm sure the ATO will also develop the capacity to check those rental property loans that have been extended to fund the purchase of private assets like cars. ATO will then want to check if you are apportioning the interest when preparing your tax return.
The more financial pressure the government is under, the more audit activity can be expected.

As for banks viewing your account details from other banks, I can't answer that one.

 

[Rob G.]

I just noticed that eTax is not pre-filling some banks interest information.

A hiccup in the new ATO system perhaps ?

Cheers,

Rob

 

[redwing]

I just noticed that eTax is not pre-filling some banks interest information.

A hiccup in the new ATO system perhaps ?

Cheers,

Rob

Hi Rob,
How did it work previously, you put in the account details and the interest earned or paid was automatically pre-filled

 

[Rob G.]

The ATO website downloads all the financial data it had on you such as employer payment summary, bank gross interest, and company dividends, franking credits.

However, interest was not available and needed to be filled manually this year.

From more than one bank source, so it makes me suspect an ATO problem.

Cheers,

Rob

 

[Rob G.]

Actually, I found the work expenses page frustrating.

There are fields for listing your "other work-related expenses" - for which you are to include decline in value.

Then there is a separate field below to actually list the decline in value claimed, but it double counts in the total at the page bottom when you manually enter this figure (I didn't use the worksheet for this), making the total too large by this amount.

BUT ... if you list your work expenses omitting decline in value and then list the decline in the field below ... you get a correct total on this page BUT the final return summary does not include your decline in value deductions !

So, I ran out of time and just listed expenses inclusive of decline, and left this specific field blank.

Stuffs up their data breakdown, but I get the correct deduction amount.

Cheers,

Rob

 

[JamesGG]

I just noticed that eTax is not pre-filling some banks interest information.

A hiccup in the new ATO system perhaps ?

http://ato.gov.au/taxprofessionals/content.asp?doc=/content/00246352.htm

About halfway down, there's a table which shows when various info becomes available on the pre-filling reports.

Those pre-filling systems are great, but they often aren't much use until September or so...

 

[poppy]

Those pre-filling systems are great, but they often aren't much use until September or so...

Yes, I find most of the pre-filling completely useless as I want to get my tax return completed ASAP so I can get my refund of course.

I think the only one I've been able to use is Medicare pre-filling. Bank interest, dividends etc all take too long to become available.

Whilst doing this years tax return, I discovered I had made a small error with my dividends last year. About $30 in my favour. The ATO haven't come knocking on my door yet

 

[yadreamin]

I think there will be a small [very small] error on my sons e tax l did yesty with bank interest. As it didnt pre-fill l assumed there wasnt any interest, son assures me it would be a bonus if there was interest.
Reckons he has just learnt you only get that Interest if there is money left IN the account not as the money flies through the account at high speeds

all in all l found the e-tax simple to do only wish l could do all my tax stuff on it

cheers

 

[Ed Barton]

you would be very surprised at the powers the ATO has...

THE Tax Office has been given a ''tick of approval'' to break into homes, cars and workplaces where it believes documents are at risk of being destroyed.

The visits, which involve locksmiths and do not need court-issued warrants, have received the all-clear from the Ombudsman after an investigation in which his staff accompanied 100 tax officers on a co-ordinated raid on homes, cars and workplaces in four states.

An earlier Senate report found that the ATO conducted as many as 280,000 raids without warrants yearly.

http://www.smh.com.au/national/taxman-free-to-break-in-to-homes-20100215-o2vn.html

 

[Perth Investor]

The ATO, yes, but not the banks. The only bank that has access to your account details is the bank that has the account. They can't share that with any other bank without your authorisation.

Of course the changes (already happened?) to the credit reference laws mean anytime you are late paying a loan etc, the bank can put that on your credit history, so even though other banks can't see your accounts, they can see how you have been paying your loans / credit cards, and whether you regularly overdraw your savings accounts.

 

[smallbuyer]

Hello,

Thanks for all your replies. If you apply for a credit card/loan with a bank are you giving them authority to get your account details from other banks?

Regading a $30 mistake with a dividend does anyone know if the ato even bothers to chase up things this small? In my dealings with them they seemed to indicate they would hardly bother with something so small.

Smallbuyer

 

[dan75]

Regading a $30 mistake with a dividend does anyone know if the ato even bothers to chase up things this small? In my dealings with them they seemed to indicate they would hardly bother with something so small.

Smallbuyer

They most certainly do bother checking up on it. However, depending on the amount, they may not bother asking you for the money, but they will still send you a letter letting you know you've been naughty and not to do it again.

I got such letter from them 2 years ago about a futures/cfd's trading account that I had completely forgotten about as I did not use it in that financial year. It had earned about $15 of interest (as I only had a couple of hundred dollars in it). They sent me a letter pointing out the fact that I omitted that account in my Tax Return for the year, that they were going to be kind enough not to fine me for it, but to make sure I include it in future Tax returns.

Fair enough, I guess.

 

[Perth Investor]

Hello,

Thanks for all your replies. If you apply for a credit card/loan with a bank are you giving them authority to get your account details from other banks?

Smallbuyer

No. The only information a bank will ever see from another bank about you, is information YOU specifically provide. i.e. if you give them a statement then they have the information, but if not, they won't have it. period. end of story.