We may send a letter about taxable payments annual reporting if we receive information that you received payments for building and construction services provided during the year and you did not include this business income in your tax return.
Since 1 July 2012, businesses in the building and construction industry are required to report payments made to contractors for building and construction services each year. They do this by lodging a Taxable payments annual report.
Understanding your taxable payments annual report schedule
Below is a sample schedule. Keep in mind that your schedule will contain your details and may not look exactly like this one.
Income schedule |
|||
---|---|---|---|
Tax return item and description |
Amount you declared |
Discrepancy |
Proposed adjustment amount |
Assessable government industry payment |
$0 |
$0 |
$0 |
Other gross income |
$20,000 |
$153,000 |
$173,000 |
Total income |
$20,000 |
$153,000 |
$173,000 |
Payer ABN |
Payer name |
Payee name reported to us |
Amount |
00 123 456 789 |
Payer |
Payee name |
$123,000 |
00 123 456 790 |
Payer |
Payee name |
$50,000 |
The following definitions will help you understand your schedule:
- Tax return item and description – The relevant item on your tax return.
- Amount you declared – The amount you declared against each applicable item on your tax return.
- Discrepancy – The difference between the amount you declared on your tax return and the amount that has been reported to us.
- Proposed adjustment amount – The amount we propose to include on your tax return.
- Payer ABN – The ABN of the reporting payer for each source of income, as reported to us.
- Payer name – The name of the reporting payer for each source of income, as reported to us.
- Payee name reported to us – The name of the recipient of for each source of income, as reported to us
- Amount – The amount of income reported to us.
Legislation requires businesses in the building and construction industry to provide an annual report on payments they have made to contractors during the year. If you do not agree with the information reported by the payer and they are known to you, you can contact them to verify the amounts reported.
Alternatively, contact us to discuss any suspected reporting errors and we will endeavour to follow up with the payer on your behalf.
See also:
We may send you a letter if we receive information that you received payments reported through taxable payments annual reporting and you did not include this income in your tax return.