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  • Why we collect information about payments to contractors

    The information provided by businesses and government entities in their taxable payments annual reports allows us to identify those contractors who have:

    • not included all their income on their tax return
    • not lodged tax returns or activity statements
    • not registered for GST where they are required to do so
    • quoted the wrong ABN on their invoices.

    It also allows us to help individual contractors (sole traders) by pre-filling information about these payments into their tax return.

    There is no requirement for businesses or government entities to provide their contractors with details of the information reported. However, contractors may request this information from you. You can choose to use the payee information statement to assist your contractors.

    Contractors meeting their tax obligations, don't need to do anything. Those who are not meeting their tax obligations could be subject to a review or audit and may face penalties.

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    How contractors can meet their obligations

    • Lodge tax returns by the due date.
    • Include all income in the tax return.
    • Lodge any tax returns for previous financial years as soon as possible.
    • Lodge activity statements by the due date.
    • Quote the correct and current ABN on all invoices.
    • Consider making a voluntary disclosure if a mistake was made on a previously lodged tax return. Penalties may be reduced for those who voluntarily advise us of any errors or omissions.
    • Keep records of all the income received and payments made. Keeping records of all business transactions helps in reporting all the income received and claiming deductions.
    • Check that all other tax obligations have been met.

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    How we can help

    We offer a range of tools and services to help make it easier for small businesses to get their tax and super right.

    We encourage those who are having difficulty paying their tax to contact us as early as possible.

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    Last modified: 09 May 2018QC 51602