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ATO warns businesses on looming TPAR deadline

The ATO is reminding businesses to lodge their tax payable payment annual report by 28 August after issuing around $9 million in penalties in the five years to 2023.

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The Tax Office is urging businesses required to lodge a taxable payments annual report (TPAR) to do so by 28 August 2024.

Businesses may be required to lodge a TPAR if they pay contractors for certain services including building and construction; cleaning; courier and road freight; information technology (IT); or security, investigation, or surveillance.

It also applies to government entities that pay grants to people or organisations with an Australian Business Number (ABN).

The ATO warned businesses that it is an annual requirement to lodge a TPAR and that penalties may apply for failing to lodge one.

ATO Assistant Commissioner Tony Goding said the taxable payments reporting system (TPRS) ensures contractors providing certain services report all their income.

“This helps keep a level playing field by making sure all businesses pay their fair share of tax,” said Goding.

“TPAR data strengthens our ability to detect and deal with dishonest operators trying to gain an unfair advantage over the majority who do the right thing. It also protects billions of dollars in missing taxes each year, money that funds essential community services, like health, education and natural disaster management.”

In the 2023–24 financial year, Goding said the ATO provided visibility of more than $451 billion in gross TPAR payments from almost 177,000 businesses to almost 1.3 million contractors.

“In doing so, we have helped contractors complete their income tax returns through the pre-fill and transaction services report,” he said.

The ATO said that from 2019 to 2023, it has issued approximately $9 million in penalties to over 5,200 businesses not lodging their TPAR.

“Lodging online is quick and easy. If businesses are unsure if they need to lodge a TPAR, they can visit www.ato.gov.au/TPAR or ask their registered tax or BAS agent,” said Goding.

The ATO said tax or BAS agents can lodge a TPAR or NLA form for their clients using SBR-enabled software or through Online services for agents.

 

 

 

Miranda Brownlee
26 August 2024
accountantsdaily.com.au

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