Taxable Payment Annual Report
As it was the case in the 2014 financial year, businesses which operate in the building and construction industry and have made payments to contractors and subcontractors for building and construction services are required by law to report details of such payments to ATO by 28 August, 2015.
The ATO will use the detail contained in this payers report to check that those taxpayers who have received payments have lodged a tax return, as required by law. If the tax returns have been lodged, the ATO will match the payments in the report with the payments disclosed in their tax return.
The payers need to report the total payments made to each contractor or subcontractor for building and construction services. If your payment is for both labour and materials, you report the whole amount. If your payment if for materials only, you do not report the payment. Please note: the payers need to report the actual payments made to contractors for the period 1/7/2014 to 30/6/2015. For example, if you receive an invoice from a contractor for work performed prior to 30 June, 2015 but you pay in July, 2015, you do not report this payment (it will be reported in the 2015/2016 year).
Attached to this letter is a sample of the form that the payer has to fill disclosing the details required regarding the payer and the payee.
If you would like us to prepare and lodge the report form, please send us the details of each payee well before 25th August so that we can make sure it will be lodged in time.
If you lodged a report last year but you have made no payments in the 2014/15 year please let us know so we can notify the ATO accordingly.
Please do not hesitate to contact us with any queries on (02) 9713 1199