As part of the Federal Budget, businesses in the building and construction industry need to report for the period starting 1 July 2012 the total payments they make to each contractor for building and construction services each year to the ATO by completing a taxable payments annual report. The aim of the system is to improve compliance with tax obligations by those contractors who are currently not doing the right thing. The information reported about payments made to contractors will be used for the ATO’s data matching to detect contractors who have not lodged tax returns and who have not included all their income on tax returns that have been lodged.
Who needs to report?
From 1 July 2012, you need to report if all of the following apply:
You are considered to be a business that is primarily in the building and construction industry if any of the following apply:
Details you need to report
For each contractor, you need to report the following details each financial year:
Payments you need to report
You need to report payments you make to contractors for building and construction services.
Building and construction services include any of the activities listed below if they are performed on, or in relation to, any part of a building, structure, works, surface or sub-surface:
For a list of occupations and work activities that qualify as building and construction services and dor examples of what the ATO considers to be buildings, structures, works, surfaces or sub-surfaces click here.
When to Report
Your Taxable payments annual report is due 21 July each year. The first Taxable payments annual report is due 21 July 2013 for payments made in the 2012-13 financial year. In this first year, if you lodge your activity statement quarterly, you can lodge by 28 July 2013.
If you have any questions please do not hesitate to contact us at ourteam@azuregroup.com.au
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