10,000 taxpayers face fines over investments

The Australian Tax Office has sent ‘please explain' letters to tax practitioners acting for about ten thousand taxpayers who have apparently underreported or incorrectly disclosed income from related entities. The ATO is threatening fines of up to 25 per cent of the shortfall amounts that relate to income from investments, salaries from partnerships, dividends, rent, capital gains and deductions of losses. The ATO said last year that it would be focussed on income from trusts and partnerships to ensure they matched income disclosed by beneficiaries and related partners.

Source: The Australian Financial Review