• Common errors

    The table below is based on recent statistics and identifies common examples and types of GST reporting errors made by small and medium businesses.

    Area of error

    % of total small business errors

    % of total medium business errors

    Types of errors

    BAS preparation

    58%

    46%

    • Transposition errors
    • Claiming GST credits without a valid tax invoice
    • Not including invoices produced outside normal accounting systems
    • Attributing invoices to the wrong BAS

    Incorrect set up of accounting systems or internal controls

    14%

    17%

    • No agreement between entities in relation to recipient created tax invoices
    • Excluding online sales from supplies
    • Accounting on cash instead of accruals
    • Issues during a merger when trying to integrate different systems

    Communication between related entities

    6%

    7%

    • Incorrect transfer of GST information between associated entities
    • Not applying reverse charges on advisory services in connection with an offshore related entity
    • Incorrectly treating invoices paid for on behalf of related entities as invoices for creditable acquisitions

    Incorrect supply status

    2%

    11%

    • Incorrectly classifying the GST status of government rebates
    • Early termination fees on contracts
    • Travel and entertainment expenses
    • Insurance settlements
    • Car parking supplied to staff (FBT)
      Last modified: 16 May 2014QC 23370