Earlier this month a $165 million tax fraud against the Australian government was uncovered by a joint AFP and ATO investigation.
The fraud allegedly involved a company named Plutus established by the syndicate to provide payroll services to legitimate clients.
The ATO has now issued initial guidance to assist taxpayers who may have been affected by the alleged actions of Plutus through using the company’s services.
The ATO has stated that workers will not be penalised when the amount reported as being withheld is not actually paid to the ATO. At tax time, the amounts withheld from their pay will be applied when their income tax liability is assessed.
The guidance also includes information on what workers need to do to lodge their 2016-17 tax return and how to check their superannuation entitlements.
For employers the ATO is still trying to understand the different scenarios people are in and how it can support those affected.
“We understand that sometimes workers and employers are affected by circumstances outside their control and we are implementing a range of support measures to ensure that you have clarity on your circumstances,” the ATO said.
The guidance recommends employers contact their state revenue office to see if their payroll tax has been paid and that employers should use internal records of payments made to the payroll provider to issue staff with PAYG W payment summaries.
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