ATO’s taxable payments reporting system helps businesses compete on the level
The Australian Taxation Office (ATO) has confirmed more than 60,000 businesses haven’t yet complied with lodgement requirements under the Taxable payments reporting system (TPRS) for 2019-20.
The TPRS is a black economy measure designed to assist the ATO to identify contractors who don’t report or under-report their income.
According to the ATO, the black economy is costing the community as much as $50 billion, which is approximately three per cent of Gross Domestic Product (GDP).
The ATO estimates that around 280,000 businesses need to lodge a Taxable payments annual report (TPAR) for 2019-20.
It’s not just businesses that pay contractors in the building and construction industry that need to lodge a TPAR.
2020 was the first year that businesses that pay contractors to provide road freight, information technology, security, investigation, or surveillance services may need to lodge a TPAR with the ATO. This is in addition to those businesses providing building and construction, cleaning, or courier services.
Businesses who have not yet lodged need to lodge as soon as possible, to avoid penalties as forms were due to be lodged by 28 August 2020 and are now well overdue.
Some businesses may not realise they need to lodge a TPAR but may be required to, depending on the percentage of payments received for deliveries or courier services.
Many restaurants, cafés, grocery stores, pharmacies and retailers have started paying contractors to deliver their goods to their customers. These businesses may not have previously needed to lodge a TPAR. However, if the total payments received for these deliveries or courier services are ten per cent or more of the total annual business income, you’ll need to lodge.
More information and resources like videos, fact sheets, webcast recordings and examples to help businesses and their advisers work out if they need to lodge, how to lodge and what to report is available at ato.gov.au/TPAR.
Omnis Group are modern, forward-thinking Business Accountants in Perth, providing practical, proactive, real-world advice and support that goes beyond the basic preparation and lodgement of tax returns, to identify opportunities for improvement in your business. Contact us in Subiaco Perth on 08 9380 3555.
Source: ATO