From 1 July 2012, businesses in the building and construction industry need to report the total payments the make to each contractor for building and construction services each year. You need to report these payments to us on the Taxable payments annual report.
Details you need to report
For each contractor, you need to report the following details each financial year:
- ABN, if known
- Gross amount you paid for the financial year (this is the total annual amount paid inclusive of GST)
- Total GST included in the gross amount you paid
The annual report must be lodged with the Tax Office in July each year. Penalties may apply if the report is not lodged on time.
What you need to do now
If you cannot easily collate the information required above then you will probably need to change how you record your contractor information.
We can help so give us a call on (07) 5439 1600. We will charge you a fee for this based on exactly what is required but doing nothing is not an option or you may end up being targeted by the ATO for further compliance action and penalties. In that case you will still have to update your reporting system and the longer you leave it the greater the potential cost to you.
PHONE US NOW ON 07 5439 1600 AND LET US SAVE YOU A FUTURE HEADACHE