If your business is in the building and construction industry, you might have heard of changes in your financial year reporting.
Last year, the government introduced taxable payments reporting to improve tax compliance within the building and construction industry. Businesses are now required to report the total payments made to each contractor for building and construction services to the ATO, dating back from 1st July 2012.
According to the ATO, the information reported will be used to detect contractors who have not lodged tax returns or included all of their income on tax returns that have been lodged. You will need to lodge a Taxable Payments Annual Report (TPAR) if:
- you are a business that is primarily in the building and construction industry
- you make payments to contractors for building and construction services
- you have an Australian business number (ABN).
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