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Edited version of your private ruling
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Ruling
Subject: preparing activity statements
Question 1
Are you entitled to report GST annually?
Answer
No.
Question 2
What changes were made by the Australian Taxation Office (ATO) to a certain activity statement?
Answer
The ATO has inserted a PAYG instalment amount of a certain amount at label 5A.
The ATO has changed the net amount at label 9 from a certain amount (debit) to a certain amount (debit).
Question 3
Have you completed your activity statements correctly?
Answer
You have completed your activity statement for a certain quarter incorrectly.
You may have completed your activity statements for a certain financial year incorrectly.
This ruling applies for the following periods:
The scheme commences on:
Relevant facts and circumstances
You are registered for GST.
You are a taxi driver.
You report GST on a quarterly basis.
You reported your total revenue for a certain financial year, a certain amount, at labels G1 and 1A of a certain activity statement.
You reported your total expenses for a certain financial year, a certain amount, at labels G10 and 1B of a certain activity statement.
You calculated a net amount for a certain activity statement of a certain amount (debit) and you reported this figure at label 9.
You have not shown an amount at label T9 of a certain activity statement.
The ATO has transferred the PAYG instalment amount at label T7 of a certain activity statement to label 5A of that activity statement.
The ATO has changed the net amount figure at label 9 of a certain activity statement to a certain amount (debit).
You have not lodged your activity statements for certain quarters of a certain financial year.
You have lodged all activity statements for a certain financial year.
You reported a certain amount in each of the activity statements for certain quarters of a certain financial year.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 section 11-5
A New Tax System (Goods and Services Tax) Act 1999 section 11-20
A New Tax System (Goods and Services Tax) Act 1999 subsection 144-5(1)
A New Tax System (Goods and Services Tax) Act 1999 subsection 151-5(1)
Reasons for decisions
Question 1
In accordance with subsection 151-5(1) of the GST Act, because you are required to be registered for GST, you are not entitled to elect to report GST annually.
Question 2
The ATO has transferred the PAYG instalment amount at label T7 of a certain activity statement to label 5A of that activity statement as the label T7 amount must be transferred to label 5A where the taxpayer has not shown an amount at label T9 and you have not shown an amount at label T9.
The ATO has changed the net amount figure at label 9 of a certain activity statement to a certain amount (debit) as the net amount figure is calculated by adding the label 1A amount to the label 5A amount and then subtracting the label 1B amount and the result of this calculation is a certain amount (debit).
Question 3
Certain financial year
You report GST on a quarterly basis. Therefore, your GST related figures for a certain financial year must be reported in the activity statements for the quarters in which the transactions occurred.
For example:
Revenue you received in a certain quarter only must be reported at label G1 (sales) of a certain activity statement.
Purchases for a certain quarter only must be reported at label G11 (non-capital purchases) of a certain activity statement, provided that they were non-capital purchases.
You have incorrectly reported your GST related figures for the entire certain financial year in a certain activity statement.
You have incorrectly reported your total revenue for a certain financial year at label G1 of a certain activity statement.
You have incorrectly reported your total expenses for a certain financial year at label G11 of a certain activity statement.
You have incorrectly reported revenue at label 1A of a certain activity statement. Your GST liability on revenue for a certain quarter should be reported at label 1A of the activity statement for that quarter. This figure is 1/11th of the revenue you received in a certain quarter.
You have incorrectly reported expenses at label 1B of a certain activity statement. Your input tax credits for a certain quarter should be reported at label 1B of your activity statement for that quarter. You are not entitled to input tax credits for expenses that are not subject to GST. Your input tax credits for a certain quarter are equal to the total GST paid on expenses paid in a certain quarter.
You did not transfer the PAYG instalment amount at label T7 to label 5A. The PAYG instalment amount at label T7 must be transferred to label 5A unless you decide to vary the PAYG instalment amount. If you decide to vary the PAYG instalment amount, you must complete labels T8, T9 and T4 and transfer the amount at label T9 to label 5A.
A certain amount net amount (debit) you reported at label 9 is incorrect. The amount at label 9 should be the (correct) label 1A amount plus the (correct) label 5A amount minus the (correct) label 1B amount. The net amount you calculated was worked out on the total revenue and total expenses for the entire certain financial year instead of on the revenue and expenses for a certain quarter. The certain amount net amount (debit) currently showing on the ATO system is also incorrect as it is based on incorrect label 1A and 1B amounts.
You must request a blank revised activity statement for a certain quarter, complete this revised activity statement and return it. You can request this form by ringing 13 28 66.
You must lodge activity statements for certain quarters of a certain financial year, as these have not been lodged yet.
Certain financial year
If you were driving a taxi during a certain period, your GST related figures for a certain financial year should be reported in the activity statements for the quarters during which you worked as a taxi driver in that year as you report GST on a quarterly basis.
If you were driving a taxi during a certain period, your activity statements for the quarters within this period are incorrect, as they show certain amounts only.
If you were driving a taxi during a certain period, and you reported your GST related figures for an entire certain financial year in a certain activity statement, this activity statement is incorrect as your GST related figures for the entire certain financial year should be should be reported in the activity statements for the quarters during which you worked as a taxi driver in that year.
If the figures in your activity statements for quarters in a certain financial year are incorrect, you will need to lodge revised activity statements for the quarters in that year.