Does ATO cross check earnings stated on a lo doc ?

G'day people.

I read the other day in a broker thread on anther site that the ATO cross checks any earnings stated on a lo doc loan app , how could this be right ?

Your not even meant to have done any financials & if that was really going to happen then it would defeat the lo doc purpose wouldn't it ?

Maybe he was just talking about through one particular bank or something ?

Cheers
 
What you state to the lender as your income the ATO can easily access.

With a LO doc loan, you still have to declare to your lender how much your income is - just not have to supply documented proof of that income.

Hope this helps.
 
income is treated differently by the ATO tho - regular caap gains that are not realised caan be income that is not taxable

if you run a restaurant tho and a re just stuffing cash under the tablecloths then you have a problem.
 
income is treated differently by the ATO tho - regular caap gains that are not realised caan be income that is not taxable

How can capital gains ever be classified as income??? Can you use capital gains to make loan repayments? Income is regular cash... capital gains is a non-cash theoretical paper profit that could disappear tomorrow.
 
asset values are a lot more likely to be here tomorrow than a job tho. Borrowing against capital at the right LVRs should be pretty straight forward
 
well it use to be but i notice that since the gfc they do call it lumpy income, as you say. probably because cap gains are getting harder to generate that even the banks dont believe it can be done. and if you mention the word 'developer' you are shown the door anyway. (i have just surrendered a shelf company that hard the name 'development' in it because the banks freaked when they saw it. crazy hey)
 
How can capital gains ever be classified as income??? Can you use capital gains to make loan repayments? Income is regular cash... capital gains is a non-cash theoretical paper profit that could disappear tomorrow.

Agree 100% but it's amazing what some want to get away with.:eek:
 
The Banks supply lots of information to the ATO.

I worked for 10 years with WBC and also worked and trained staff in the area that dealt with these type of requests.

I even had the ATO come out and visit me about a case. (Two ATO staff)

They have the power to request information by law from the banks, who must supply the info.

As far as I know database's of information are given to the ATO who use it to match against their information.
 
i got a letter the other day (mass produced, not specific),
relating to international transactions.
Make of it what you will,
but they are increasing their data matching capabilities.

I'm not worried as i have this already covered.
 
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