Australian musicians receiving regular royalty payments from APRA AMCOS who have not been correctly reporting their earnings may be in the radar of the Australian Taxation Office thanks to a new crackdown.
The ATO implemented a data matching program on 21 August that compares royalty payments from APRA and AMCOS with artist’s income tax returns, and will be seeking retribution from any artists who have not been paying correct tax on royalties.
Labels and publishers who own the rights to various songs collecting royalties will also be under review.
“It’s helping us ensure that there is a level playing field for all taxpayers,” an ATO statement sent to theMusic.com.au reads.
“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 they need.”
The ATO is currently collecting royal payment data related to composers, song writers, lyricists, music publishers and mechanical copyright owners from 2010-2013.
“Based on this analysis we will tailor our compliance approaches," they said.
