New laws passed by parliament last month directly target the behaviour of taxpayers that don’t meet their obligations.
Tax deductions denied
If taxpayers do not meet their PAYG withholding tax obligations, from 1 July 2019 they will not be able to claim a tax deduction for payments:
The main exception is where you realised there is a mistakeand voluntarily corrected it. For example, if you made payments to a contractor but then later realised that they should have been paid as an employee and no PAYG was withheld. 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.
This gives business owners time to make appropriate plans to ensure their business affairs are compliant. Contact Jewell Moore to find out how we can assist you.
