Practical Compliance Guideline 2020/4, which sets out when the ATO will apply its compliance resources to schemes to obtain access or to increase the amount of the JobKeeper payment, has now been updated to clarify its application and to provide additional examples.
The clarification now notes that before the Tax Commissioner looks to apply his compliance resources, the ATO will first seek to ascertain whether the scheme was effective in obtaining access to the JobKeeper payment, or an increased amount of a JobKeeper payment, including by applying the principles set out in Law Companion Ruling LCR 2020/1.
LCR 2020/1 provides guidance on the JobKeeper basic decline in turnover test, and sets out the ATO’s view on how to calculate GST turnover for eligibility to the scheme.
The ATO has also now added two additional examples of schemes that will attract the commissioner’s attention.
The first extra example includes where a company enters into a scheme to defer or reduce the price paid to suppliers so that these suppliers will be eligible for a JobKeeper payment.
The second example also details when a company enters into a scheme where there is a deferral, reduction or waiver of revenue paid to a company so a company can obtain a JobKeeper payment.
Both the additional examples have been labelled as “high risk” for the commissioner to apply his compliance resources.
You can view the full list of examples in PCG 2020/4 here.
Jotham Lian is the editor of Accountants Daily, the leading source of breaking news, analysis and insight for Australian accounting professionals.
Before joining the team in 2017, Jotham wrote for a range of national mastheads including the Sydney Morning Herald, and Channel NewsAsia.