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

• ABN
• 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