2021 TPARs are due to be lodged for businesses who have paid contractors to provide the following services:
❑ building and construction;
❑ courier, delivery or road freight;
❑ information technology (‘IT’); or
❑ security, surveillance or investigation.
With specific reference to the TPAR due on 28 August 2021, the ATO has reminded taxpayers they may need to report payments made to contractors during the 2021 income year for the first time.
This will particularly be the case where such payments were made for delivery services done on behalf of their business (i.e., perhaps as a result of a COVID-19 business ‘pivot’ during lock down periods).
Importantly, the ATO has reminded taxpayers that they already have the records needed to lodge a TPAR from preparing their relevant activity statements including the:
❑ contractor’s name, address and ABN (if known); and
❑ total amounts for the income year of payments to each contractor (including GST) and tax withheld where the contractor did not quote their ABN.
Ref: ATO website, TPAR – check if you need to lodge, 12 July 2021
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Please Note: Many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances.