As of 1 July 2019, Taxable Payments Annual Reports (TPAR) will affect the following industries:
- Road freight
- IT
- Security
TPARs were first introduced into the building and construction industry from 1 July 2012.
Entities with ABNs need to report to the ATO information about the payments that they make to contractors for services.
The policy underlying this measure is to ensure that payments made to contractors in these industries are reported to the ATO, originally announced as part of the 2018-19 Federal Budget Black Economy package.
The information the ATO collects through taxable payments reporting aims to address:
- Non-lodgement of tax returns
- Omitted income in tax returns
- Non-compliance with goods and services tax (GST) obligations.
The ATO’s focus areas in administering the TPARs are:
- Educating businesses about their reporting obligations
- Engaging contractors to help them meet their tax obligations
For further information, please contact our team today on 03 9708 8801 or email info@rvpartners.com.au
