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27 Apr 12 On taxable payments reporting - building and construction industry

MEMBER 98 writes:

"Are the ATO are making it harder for themselves before they've even started using the information gathered?

Following the ATO factsheet example on the Construction Industry's requirement for reporting on Taxable payments, it appears that the ATO does not want the unpaid invoices at 30th June 2013 shown on the payments report for 2012/13.

However the aim of this added burden on the reporting taxpayers as per the ATO factsheet is stated as:

"The information reported about payments made to contractors will be used for our data matching to detect contractors who have not:

  • lodged tax returns
  • included all their income in returns that have been lodged."

Surely this includes some taxpayers who should be reporting on an accruals basis?  If the reporting business has an invoice from the contractor the work would have usually been done and income therefore earned (if not a cash basis).

The reporting businesses will be going to the trouble on behalf of the ATO to prepare the reports, why not just add an extra column for the creditor amounts so the ATO have better information to assist their future investigations?

As most businesses reporting would be using computerised accounts preparation software, it would not take much to create these reports showing the cash and accrued portions."


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