Penalties May Apply
The ATO will apply failure to lodge penalties for businesses not identifying their obligation to lodge TPAR. In the coming weeks, the ATO may be phoning Agents (or taxpayers directly) about their overdue TPAR to follow up on the non-lodgment letters that have been sent.
Background
Some organisations are required to file TPARs, or industry-specific reports, with the ATO to provide information on payments made to certain consultants, subcontractors, and contractors. Affected industries where taxpayers may have an obligation to lodge a TPAR are:
Cleaning services.
Building and construction services.
Road freight.
Courier services.
Information technology services.
Security, investigation or surveillance services.
For more information, see: ICB – Taxable Payments Reporting System (TPRS)
What is Developing?
Even though businesses are gradually becoming more aware of the TPAR reporting requirements and, in particular, the range of activities covered by the regime, the ATO are still coming across companies that failed to recognise their obligation to report before the first lodgement deadline for their sector.
If you make payments to contractors, you may need to report these payments in a Taxable payments annual report (TPAR). TPARs must be lodged by 28th August each year.
From 22nd March 2023, the ATO will apply failure to lodge penalties to those who:
Did not lodge their 2022 or prior year TPAR.
Have been sent three non-lodgment letters about their overdue TPAR.
If you have overdue TPARs, lodge them now.
If you do not need to lodge a TPAR, you can submit a Non-lodgment advice to avoid unnecessary follow-up.
Reminder to Our Clients
You must lodge a TPAR by 28th August each year.
You may face penalties for an overdue TPAR.
The ATO website has information to help you and your clients understand TPAR lodgment obligations, how to prepare, record and report. The ATO also has a range of support options available to help when individual circumstances make meeting tax obligations difficult.