TAX ALERT - EXPANDING THE TAXABLE PAYMENTS REPORTING SYSTEM FOR I.T. CONSULTANTS

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TAX ALERT - EXPANDING THE TAXABLE PAYMENTS REPORTING SYSTEM FOR I.T. CONSULTANTS

Lowe Lippmann Chartered Accountants

Introduction

Businesses involved with building and construction were the only industry segment required to lodge a Taxable Payments Reporting System (TPRS) disclosure, for the year ended 30 June 2018, with the Australian Taxation Office (ATO) by 28 August 2018.

The Government announced in the 2018 Budget that it would extend the TPRS regime to a comprehensive list of information technology (IT) service businesses, starting from 1 July 2019.

The new measures classify the IT industry as high risk in terms of likelihood of tax avoidance, placing it alongside cash-in-hand heavy sectors like cleaning, building and construction and the security industry.

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