Latest News

Hot Issues
spacer
Our 2021 Advent Calendar.
spacer
State and Federal COVID-19 support
spacer
ATO flags focus areas for combating $33.5bn ‘tax gap’
spacer
Business Resources - Grants, Assistance, Resources and more.
spacer
Employee Christmas Parties and Gifts – Any FBT?
spacer
FBT – Christmas Parties and Taxi Fares
spacer
How the best firms are supporting the mental health of their employees
spacer
Asian Economies (1960 - 2020)
spacer
Making the festive season less taxing
spacer
Why more Millennials are turning to SMSFs
spacer
Company directors must register - all you need to know
spacer
Hardship priority processing of tax refunds
spacer
Business valuations: Tips, tricks and traps
spacer
Government moves to scrap SG $450 threshold
spacer
World's most productive countries
spacer
Superannuation changes - Superannuation guarantee (SG)
spacer
Unused Super Contributions
spacer
Main residence exemption myths and misconceptions
spacer
ATO extends COVID-19 relief for SMSFs
spacer
Treasury consults on increase to charities financial reporting threshold
spacer
Greenhouse gas emission by country since 1880
spacer
ATO announces STP Phase 2 blanket deferral
spacer
Reminder: super changes for the 2021 financial year
spacer
Recontributions of COVID-19 early released super
spacer
Working from home during a COVID-19 lockdown: Can you claim a tax deduction for rent?
spacer
Lockdowns and mental health
spacer
Unemployment rate falls to 12-year low
spacer
ATO issues warning to first-time investors
spacer
World's largest armies 1816 - 2020
spacer
Extra 'super' step when hiring new employees
spacer
Pitfalls and proposed changes in the use of R&D tax incentives
spacer
Government expands SME loan scheme eligibility
Article archive
spacer
Quarter 3 July - September 2021
spacer
Quarter 2 April - June 2021
spacer
Quarter 1 January - March 2021
spacer
Quarter 4 October - December 2020
spacer
Quarter 3 July - September 2020
spacer
Quarter 2 April - June 2020
spacer
Quarter 1 January - March 2020
spacer
Quarter 4 October - December 2019
spacer
Quarter 3 July - September 2019
spacer
Quarter 2 April - June 2019
spacer
Quarter 1 January - March 2019
spacer
Quarter 4 October - December 2018
spacer
Quarter 3 July - September 2018
spacer
Quarter 2 April - June 2018
spacer
Quarter 1 January - March 2018
spacer
Quarter 4 October - December 2017
spacer
Quarter 3 July - September 2017
spacer
Quarter 2 April - June 2017
spacer
Quarter 1 January - March 2017
spacer
Quarter 4 October - December 2016
spacer
Quarter 3 July - September 2016
spacer
Quarter 2 April - June 2016
spacer
Quarter 1 January - March 2016
spacer
Quarter 4 October - December 2015
spacer
Quarter 3 July - September 2015
spacer
Quarter 2 April - June 2015
spacer
Quarter 1 January - March 2015
spacer
Quarter 4 October - December 2014
Quarter 2 of, 2021 archive
spacer
10% Super Guarantee from 1st July 2021
spacer
End of year financial strategies
spacer
Closely held payees: STP options for small employers
spacer
Videos to help understand accounting topics.
spacer
ATO Small Business Newsroom - May / June
spacer
New insolvency rules commence
spacer
ATO sheds light on crypto compliance focus
spacer
Post Federal budget reflections
spacer
Federal Budget 2021 - Overview
spacer
Building a more secure and resilient Australia
spacer
Federal Budget 2021 - Health
spacer
ATO signals crackdown on 4 ineligible work-from-home claims
spacer
Taxpayers urged to keep work-from-home records
spacer
Businesses feeling ‘adverse’ impacts of COVID-safe measures: ABS
spacer
New insolvency rules commence
spacer
ATO promises not to ‘destroy’ businesses as it resumes debt collection
spacer
5 strategies for successful ‘work from home’ policies
spacer
Small businesses: don’t forget your FBT concessions
spacer
ATO chases $172bn in undeclared contractor income
spacer
‘Penalties will resume’: ATO flips the switch on debt recovery
spacer
JobMaker Hiring Credit rules and reporting
spacer
ATO data-matching: JobMaker
spacer
A broad range of Calculators.
spacer
ATO Small Business Newsroom
ATO chases $172bn in undeclared contractor income

 

The ATO has warned businesses to come clean on $172 billion worth of payments to contractors as it cracks down on non-compliance with the taxable payments reporting system.

 

       

The ATO traced payments to contractors using data from its taxable payments reporting system (TPRS), following estimates that more than 60,000 Australian businesses had yet to lodge TPARs for the 2019–20 year.

Businesses providing services across the building and construction, cleaning, and courier industries are required to lodge a TPAR annually. 

After the scheme was extended last year, businesses providing road freight services, information technology services, and security, investigation or surveillance services now have to lodge TPARs, too. 

ATO Assistant Commissioner Peter Holt said the technology has granted the Tax Office a clearer view of payments made to contractors, and since its update in early March, more than 158,000 businesses expected to lodge TPARs for the 2019–20 year have now done so.

“More than 158,000 businesses have now reported all payments made to contractors in the 2019–20 year to us,” Mr Holt said. “This data, combined with our sophisticated data and analytics capability, means our field of vision to detect unreported income is better than ever.”

Armed with the TPRS, which Mr Holt in March expected to capture many taxpayers for the first time ever, the ATO has signalled it will now move to proactively contact contractors to ensure that income declared matches that provided to them by their employers. 

“Where we discover a discrepancy, our first step is always to contact the taxpayer or their tax professional to check they have fully reported these payments in their tax return,” Mr Holt said.

Through extended lockdown periods and volatile business conditions, the ATO saw businesses contract out services at an increased rate. In August last year, Mr Holt said the resulting services would see businesses that may never have needed to lodge a TPAR, have to do so by 28 August last year. 

The ATO noted that it is also using TPRS data to check that businesses are operating under active Australian business numbers and are registered for GST where appropriate. 

Pointing to a $6.7 billion shadow economy fueled by tax evasion in Australia, Mr Holt said it isn’t fair to contractors who do the “right thing” in their industries when their colleagues deliberately under-declare their income. 

“Honest courier drivers do the right thing: they pay their rego, pay their road tolls, stick to the speed limit, and pay their taxes,” he said. “It’s not fair that some dishonest drivers get to skip the ‘toll booth’ and get an advantage over their honest competitors.”

 

 

John Buckley 
01 April 2021 
accountantsdaily.com.au

 

© O'Brien and Partners 2011 - All Rights Reserved | 91 Station Street, Malvern VIC 3144 | Tel: 03 9509 3911 | Fax: 03 9509 3922