The ATO has advised that the Taxable Payments Reporting System (TPRS) protected $2.7b from being lost to the black economy in the building and construction industry in the 2015/16 financial year.
Businesses in building and construction are required to lodge a TPRS annual report each year on any payments to contractors and subcontractors within the industry. This data allows the ATO to identify contractors who fail to lodge returns or activity statements, fail to register for GST, use false ABNs or fail to report all of their income to the ATO.
The TPRS has now been extended to cleaning, courier, road freight, Information Technology (IT), security, investigation and surveillance services. Businesses that supply courier or cleaning services are reminded that they must report in respect of 2018/19 by 28 August 2019. Businesses in road freight, IT, security, investigation or surveillance services must report in respect of 2019/20 by 28 August 2020.