TPAR stands for Taxable Payment Annual Report.
In a nutshell TPAR tells us about payments that are made to contractors for providing services.
When you think contractors, these can include consultants, independent contractors, subcontractors, they can be operating as sole traders (individuals), companies, partnerships or trusts.
When you look at the report which is generally found on the invoice you receive, it should have the following
- ABN (Australian Business Number)
- The person’s name and address
- The gross amount you paid to them, for the financial year (including any GST)
The ATO will use this information to identify the contractor/s who may have not met their tax obligations, hence why this report is so important.
If your business falls under one of these categories.
- Building & Construction Industry
- Courier/road freight/delivery
- IT (Information Technology)
- Security, surveillance & investigation
If you have a business under one of these categories, they you may need to lodge a Taxable Payments Annual Report (TPAR), under the taxable payment reporting system (TPRS), by the 28th August 2020.
If your business is offering new or expanded services (as listed), due to the response of COVID-19 and the restrictions implied and you have been paying contractors to provide these services, then if you do not lodge your TPAR, the ATO can penalise for late or non-lodgement.
That is why it’s so important to make sure this is completed within the due date.
If you are concerned or need assistance, Maree is a Registered BAS agent and can lodge your TPAR.
Maree’s Mobile Bookkeeping | Over 20 years Bookkeeping experience | Qualified BAS Agent
M: 0429 363 047