ATO to consult on new GST reporting for Top 1,000 groups
The Tax Office is consulting on what guidance is required to help taxpayers complete new GST reporting requirements.
The ATO plans to introduce a new supplementary annual reporting requirement for Top 100 and Top 1,000 taxpayers who have received a GST assurance rating through an earlier GST review.
The supplementary annual GST return will be introduced in the 2024–25 income year, with the ATO currently undertaking targeted consultation on guidance to help taxpayers complete the return.
"The introduction of the return will enable us to make informed decisions about future engagements with taxpayers and enhance our treatment strategies and ability to monitor GST risks that arise in the large market," the ATO said.
The regulator is undertaking consultation on what guidance is required to assist taxpayers with the completion of the supplementary annual GST return.
The ATO previously identified a range of GST risk areas resulting in taxpayers having to make corrections to their returns as part of its Top 1,000 GST assurance program.
In its findings report last year, the ATO said a common GST risk is the incorrect reporting of supplies and acquisitions from inadvertent errors.
In some cases, the ATO said taxpayers are misclassifying taxable products as GST-free including health and food products.
The ATO said taxpayers are also incorrectly reporting supplies of providing fringe benefits to employees.
"For example, we have observed taxpayers merely reporting the net amount on the BAS for transactions associated with providing motor vehicles to employees," it said.
The Tax Office also identified errors when reviewing financial suppliers where taxpayers had failed to undertake the financial acquisitions threshold test monthly.
"There is a risk that taxpayers are recovering input tax credits to which they are not entitled. In addition, we have observed taxpayers seeking to recover reduced input tax credits (RITCs) on all related costs without fully considering whether those costs are eligible for an RITC," it said.
The review also identified issues with GST classification where product classification by suppliers and retailers is not consistent with the ATO view.
"We have seen misclassification of products extending beyond food, for example, health products," it said.
The ATO is also concerned that taxpayers may be incorrectly reporting the sale, transfer or leasing of real property, and incorrectly claiming input tax credits on the acquisition of real property.
