From 1 July 2012, businesses in the building and construction industry need to report to the ATO each year, the total payments they make to each contractor for building and construction services.
Businesses need to report if they:
are in the building and construction industry
make payments to contractors for building and construction services, and
have an Australian business number (ABN).
The details to report will generally be contained in the invoices businesses receive from their contractors. Businesses are encouraged to check how they keep their records to make sure they have the details required for the new Taxable payments annual report.
The first annual report is due 21 July 2013 for payments made in the 2012–13 financial year. In this first year businesses that lodge their business activity statement quarterly, may lodge by 28 July 2013.
The information reported about payments made to contractors will be matched against other information held by the ATO to detect contractors who have not:
lodged tax returns, or
included all their income in returns that have been lodged.
For more information about taxable payments reporting go to www.ato.gov.au/taxablepaymentsreporting to find:
a list of activities and occupations that are considered to be building and construction services
examples of situations where reporting is required
a blank worksheet to assist with recording payments made to contractors
exclusions from reporting requirements
how to register to participate in an online seminar (webinar) from your home or business.
This article was written by Posted by David Baumgarten and originally posted at http://enterprisehub.com/small-business-2/are-you-in-building-construction-industry-ato-changes-from-1st-july-2012/