20 Jun 13 Information for businesses and contractors in the building and construction industry
The ATO advises that, from 1 July 2012, businesses in the building and construction industry need to report to the ATO each year the total payments they make to each contractor for building and construction services. The first Taxable payments annual report is due by 21 July 2013 (or by 28 July 2013 for those who lodge activity statements quarterly).
Businesses need to report each contractor’s ABN, name and address, the total amount paid for the year and the total GST included in that amount. This information will generally be contained in the invoices received from contractors.
Contractors need to:
- lodge their 2012-2013 tax returns by the due date and include all income
- lodge any prior year tax returns as soon as possible
- consider making a voluntary disclosure if a mistake may have been made in a previously lodged tax return. Where the contractor voluntarily advises the ATO of any errors or omissions, any penalties that apply may be reduced.
The information reported will allow the ATO to identify those contractors who have either not included all their income in their tax return, or not lodged tax returns.
For more information go here.