For financial year 2012-2013 the ATO require businesses in the building and construction industry to report on payments to all sub-contractors.
An annual return must be made by the entity making payments to the sub-contractor(s) showing the following information in relation to each payee
- Business or individual’s details
- Tax withheld where no ABN is provided
- Amount of GST
- Total payment
The ATO have released guidelines in advance of the 2011 year end including a sample submission form. Go to http://ato.gov.au/content/00321342.htm and click on the link to ‘Taxable Payments Annual Report‘ to view the sample form.
Compliance Essentials can assist your business to review systems and process; contact us at 1300 602 880 to arrange a no obligation discussion