NO DEDUCTION IS AVAILABLE IF PAYG WITHHOLDING OBLIGATIONS NOT MET

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From 1 July 2019, if taxpayers do not meet their PAYG withholding and reporting obligations, they will not be able to claim a tax deduction for payments:
·      of salary, wages, commissions, bonuses or allowances to an employee;
·      of directors’ fees;
·      to a religious practitioner;
·      under a labour hire arrangement; or
·      made for services where the supplier does not provide their ABN.

The main exception is where you realise there is a mistake and voluntarily correct it before the ATO begins a review or audit. In these circumstances, a deduction may still be available if you voluntarily correct the problem but penalties may still apply for the failure to withhold the correct amount of tax. There is also an exception for situations where you make payments to a contractor but then later realise that they should have been paid as an employee, as long as the worker has provided an ABN. 

















Disclaimer: Any information in this article is of general nature only. Any person should, before acting on the content, consider the appropriateness of it having regard to their own personal circumstances, and if necessary seek professional advice. J.A.P TAXATION and its employees or any related entities, do not accept any liability for any loss, damages or outgoings rising out of the use of all or any part of information provided in this article.
 


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