The Tax Office announced this week it will be contacting businesses in the building and construction industry about their overdue taxable payments annual reports.
“Some of these businesses may be your clients,” the ATO said in a note to tax agents.
“If your clients have not lodged their 2016 or any prior year taxable payments annual reports, now is the time to get them back on track to avoid penalties,” the ATO added.
The ATO reminded tax agents that regardless of where their clients claim their contractor expenses in their tax returns, if they have paid contractors for building and construction services they need to lodge a taxable payments annual report.
Further, depending on your clients’ circumstances, they may have claimed expenses at the contractor, commission and sub-contractor expense label; cost of sales expenses label; or other expenses label.