Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
Subscribe to our newsletter SIGN UP
ATO drives home TPRS obligations after $2.7bn saved

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

ATO drives home TPRS obligations after $2.7bn saved

The ATO have reminded businesses captured under the taxable payments reporting system regime to maintain their record-keeping obligations after recouping $2.7 billion from the building and construction industry, according to its latest data.

Tax&Compliance Jotham Lian 13 February 2019
— 1 minute read

During the 2015–16 financial year, the TPRS regime saw $2.7 billion from being lost to the black economy in the building and construction industry.

Advertisement
Advertisement

“The significant revenue increase we’ve seen from the building and construction industry as a result of the TPRS shows how effective it is in improving tax compliance in an industry,” said ATO Deputy Commissioner Deborah Jenkins.

“TPRS strengthens our ability to match income tax returns from contractors against what businesses report paying, allowing us to detect those trying to hide income and evade tax. The success of this system proves that if you’re trying to evade your obligations it won’t go unnoticed.”

The TPRS regime has been extended to a number of new industries in recent times, with the cleaning and courier industries coming into line since 1 July 2018 and the road freight, security, investigation, surveillance and information technology industries set to report from 1 July 2019.

The annual report for businesses that supply courier or cleaning services is due by 28 August 2019, while reporting for road freight, IT, security, investigation or surveillance services will be due by 28 August 2020.

“If your current record keeping isn’t accurately capturing this, I urge you to review the way you keep records or contact your professional advisor immediately to assist you,” said Ms Jenkins.

“If a contractor provides you with an invoice which includes labour and materials, you are required to report the total amount of the payment regardless of whether it’s itemised or combined.”

In its submission to Treasury, Chartered Accountants Australia and New Zealand said the ATO should look to provide a voluntary disclosure campaign with each new iteration of TPRS, in the vein of the ATO’s Project DO IT.

It also called for the agency to invest in a range of communication and education strategies to help tax advisers and their clients understand the impact.

This email address is being protected from spambots. You need JavaScript enabled to view it. 

ATO drives home TPRS obligations after $2.7bn saved
image intro
accountantsdaily logo
Tax&Compliance
FROM THE WEB