The Australian Taxation Office (ATO) has noticed a spike in businesses reporting but not remitting GST, ATO Deputy Commissioner Hector Thompson said in a speech to The Tax Institute's national GST conference.
As a result, GST debt more than doubled in the three years to 30 June 2022. “While this increase in debt has been experienced across all taxes the ATO administers, GST debt is growing the fastest. We understand that recent times have been challenging and there will be more challenges ahead. However, reporting, but not remitting GST creates an uneven playing field for businesses that do remit the GST,” he said. Deputy Commissioner Thompson said the ATO was introducing a program to provide accountants with information about potential GST risks. “Over the next four years, we will undertake early intervention engagement activities with registered tax agents who may have clients that exhibit potential GST-related risks. The aim of the program is to educate and leverage agents’ relationships with their clients to positively influence their behaviours and ensure compliance with regulations,” he said. “We will deliver risk alerts to some tax agents providing a view of potential risks in their client base. The intention here is to encourage agents to review their processes and interactions with their clients, and take corrective action, where appropriate.” Comments are closed.
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AuthorRachael Bland – Founder & CEO Archives
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