Tax Office: ‘There’ll Be Penalties For Musicians’

The Australian Taxation Office have confirmed that musicians found to not be meeting their tax obligations will face penalties and interest charges.

The ATO are cracking down on royalties paid to musicians and have implemented a data matching program to compare payments from APRA AMCOS and an artist’s income tax returns. Today the ATO have confirmed to theMusic.com.au that they’ll penalise irregularities.

“Sometimes taxpayers fail to correctly report an amount they are required to or do not meet other tax obligations,” an ATO representative said in an email.

“Taxpayers who fail to meet their tax obligations may be liable for penalties and interest charges.” They added, “When the ATO finds an error or omission, it takes into account the relevant circumstances, including compliance history, when deciding what action to take, particularly for any penalties or possible prosecution action.”

As well as musicians, labels and other rights holders may come into the crosshairs of the investigation.

“The overall purpose of our Music Industry Royalty Payments Data Matching Program is to detect and address non-compliance with taxation and superannuation obligations within this industry,” they said.

“The ATO is focusing on this industry to ensure that there is a level playing field for all taxpayers.

“Not only by identifying those who are deliberately doing the wrong thing but also by helping us to provide people who want to do the right thing with the information that they need.”