EOFY info to tax office

[jellybirddesigns]

Does anyone know if it is Ebay or Paypal who sends end-of year financial information to the tax office?

I was just wondering because we have two seller ID's in our house.

This account is in my name where I make things to sell and which I will declare to the ATO, the other account is in hubby's name and is for our everyday stuff around the house.

However they are both linked through to the same Paypal account for ease of use.

For end of year reporting, obviously we don't want to have to declare regular stuff we've sold from the house, just the stuff that I make and sell for profit specifically.

If it is Ebay who sends the info, then that's fine because only this specific account has gone over the threshold. If it is PP who send the info, then perhaps we will need to open up a separate PP account.

How do others manage their multiple account set up?

[chameleon54]

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@jm4221 wrote:

Paypal is a bank account.

ATO pulls total financial income data from your paypal and bank accounts.

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I dont think this is correct. The ATO is currently provided with the financial details of ebay accounts from the same IP address that exceed $10,000.    They dont recieve all financial transactions information from Paypal.

I doubt that Paypal is a registered Australian company, so I assume it would be regarded as a foreign financial transaction, not under the jurisdiction of the ATO. Others may have some definitive answers on this.

The $10,000 figure is not permenent and the ATO has lowered the threshold in the past and applied the new lower figure retrospectivly to ATO lodgements for past years. Basically back dating their cross references.

The ATO has also advised that starting this year it is cross referencing ALL ebay financial transactions ( even small ones ) for tax payers and centrelink clients IN A LIMITED GEOGRAPHICAL AREA, based on suburbs. It has not advised which suburbs are being targeted but I gather it is not a large area at this stage and probably targeting the main capital cities of Melbourne and Sydney. The intention is to extend this cross referencing to everyone on a rolling basis OVER A NUMBER OF YEARS. Basically random spot checks.

[clarry100]

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@chameleon54 wrote:

I dont think this is correct. The ATO is currently provided with the financial details of ebay accounts from the same IP address that exceed $10,000.    They dont recieve all financial transactions information from Paypal.

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Wonder how that works when half way thru the tax year we changed IP addresses due to changing over from ADSL broadband to NBN.

It could mean that the threshold is not exceeded on either one of those would result in a non-report on either account. So IP address hopping might be the way to go here. LOL

[4green2000]

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@clarry100 wrote:

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@chameleon54 wrote:

I dont think this is correct. The ATO is currently provided with the financial details of ebay accounts from the same IP address that exceed $10,000.    They dont recieve all financial transactions information from Paypal.

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Wonder how that works when half way thru the tax year we changed IP addresses due to changing over from ADSL broadband to NBN.

It could mean that the threshold is not exceeded on either one of those would result in a non-report on either account. So IP address hopping might be the way to go here. LOL

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all you need to do to change ip addy is switch off the modem and back on again. makes no diff though as all providers keep records.

[chameleon54]

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@clarry100 wrote:

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@chameleon54 wrote:

I dont think this is correct. The ATO is currently provided with the financial details of ebay accounts from the same IP address that exceed $10,000.    They dont recieve all financial transactions information from Paypal.

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Wonder how that works when half way thru the tax year we changed IP addresses due to changing over from ADSL broadband to NBN.

It could mean that the threshold is not exceeded on either one of those would result in a non-report on either account. So IP address hopping might be the way to go here. LOL

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Its still the same ebay ID though. My understanding is that any ebay ID over $10,000 is reported along with multiple accounts under $10,000 turnover, that when combined, exceeded the threshhold from the same ISP address. Basically accounts that ebay have identified as connected.  It is those multiple ID connections that ebay refer to when placing accounts under selling restrictions etc.

[thecatspjs]

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@cushioncovers wrote:

Does anyone know if it is Ebay or Paypal who sends end-of year financial information to the tax office?

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The ATO does get data from paypal and financial institutions such as banks through its data matching program.

http://www.afr.com/news/policy/tax/ato-uses-paypal-data-to-catch-cheats-20141024-11b96i

[chameleon54]

Subscribers only cats. I would be interested in what it says.

[thecatspjs]

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@lyndal1838 wrote:

Paypal is not a bank account....it is a money transfer service.

The ATO gets their details from ebay.  Ebay is requested to report the total turnover by the seller over all their accounts.

The ATO has no access to bank accounts either....the banks report the amount of interest gained on the account, not the amount of money being deposited.

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This is incorrect.

The ATO has access to the data collected by banks including transaction details and the source of those funds.

https://www.ato.gov.au/General/Building-confidence/In-detail/Data-matching/Legislated-data-collectio...

[thecatspjs]

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@chameleon54 wrote:

Subscribers only cats. I would be interested in what it says.

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Sorry chameleon.

Some excerpts from the article:

The Tax Office has launched a program aimed at drawing information from both banks and intermediaries such as PayPal and Bill Buddy to help it catch out tax cheats.

“It’s a long road," said ATO senior assistant commissioner Michael Hardy. “You only pick up fractions of information from [financial] providers."

But the program, dubbed “the specialised payment systems data matching program", is another layer in the fight against the cash economy.

It adds to the Tax Office’s data-matching program, under which about 640 million transactions – from sources such as banks, share registries, employers, merchants, states and territories, and government departments – are matched each year.

The new program will gather information from the big banks as well as others including Ausfit, Bill Buddy, Debitsuccess, eDebit, Ezidebit, Ezypay, Paymate, PayPal and Quickpay.

Mr Hardy said typically the information gathered was on small businesses with less than $15 million in turnover, or sole traders.

[thecatspjs]

From Bendigo Bank http://www.bendigobank.com.au/business/payment-merchant-services/eft-electronic-funds-transfer/merch...

"The ATO will electronically match data from about 900,000 merchants against their income tax returns, activity statements and other ATO records. This is part of the ATO’s expanding data matching program which aims to identify businesses not reporting all their income,
including those trading online.

By identifying businesses that are not reporting all their income, the ATO aims to maintain a level playing field and support those businesses that are doing the right thing".

[*tippy*toes*]

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@4green2000 wrote:

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@clarry100 wrote:

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@chameleon54 wrote:

I dont think this is correct. The ATO is currently provided with the financial details of ebay accounts from the same IP address that exceed $10,000.    They dont recieve all financial transactions information from Paypal.

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Wonder how that works when half way thru the tax year we changed IP addresses due to changing over from ADSL broadband to NBN.

It could mean that the threshold is not exceeded on either one of those would result in a non-report on either account. So IP address hopping might be the way to go here. LOL

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all you need to do to change ip addy is switch off the modem and back on again. makes no diff though as all providers keep records.

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No, that's only the case if your account is set up with a dynamic IP address, meaning each time you reboot the router, you get a new IP address from a selection for your area. It means you can end up having the same IP address that you've had before as they are selected at random from the kitty of ones that aren't currently in use by someone else.

If you are like me that has a static IP address, it doesn't change regardless of what you do. The only way I can get a new IP address is if I change providers, or as Clarry has done, change from aDSL2 over to NBN. I've never liked the idea of a static IP because it means you are more easily traced than someone who has dynamic. Yes, you can still be traced if you are dynamic, but it takes a bit longer. I don't do anything untoward or illegal online, but if I did, I'd be found out very quickly!

I had planned to have my tax submitted by now, but haven't got around to it due to spending extended periods from home because of family illness. I'd best get on and work out my eBay stuff before I do anything!