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.
Year-end tax checklists for Individuals and Businesses We have recently prepared two Year End Checklists which help explain some common strategies that may be considered for Individual and Businesses taxpayers. Year End Checklist for Individuals – click here Year End Checklist for Businesses – click here
Many business clients like to review their tax position before the end of the income year and evaluate any strategies that may be available to legitimately reduce their tax. Traditionally, year-end tax planning for profitable small businesses is based around accelerating deductions and deferring income. The Year End Checklist in the link below explains some common strategies that may be considered for all business taxpayers.
A strategy often used to reduce taxable income (and, in turn, tax payable) in an income year is to bring forward any expected or planned deductible expenditure from a later income year. However, any individuals with potentially reduced income for the 2025 tax season may want to instead consider deferring any deductible expenditure (if possible).
