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Tax agents have expressed frustration over a lack of visibility with client lodgment obligations and the time frame for reporting.
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ATO responds to tax agent gripes over TPAR obligations
03 April 2024
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The ATO has responded to criticisms raised by tax agents regarding the reporting process for taxable payments annual reports (TPARs), with practitioners finding it impossible to access consistent and timely information about which clients have these obligations.
The ATO previously stated on its website that tax practitioners can check if their client needs to lodge a TPAR by using the reported transactions service in Online Services for agents to view records of payments they’ve made to contractors.
However, tax agents say checking every client takes substantial manual effort, making it more difficult for tax agents to help clients with their obligations.
The ATO has been urged to provide tax agents with regular and easily accessible lodger lists for not just TPARs but across a range of obligations including fringe benefits tax, activity statements, debt balances and not-for-profit self-review returns.
The Tax Office already provides comprehensive, on-demand data for income tax, which practitioners want to see introduced for other obligations.
In a statement issued to Accountants Daily, the ATO said while the ability to generate a TPAR lodger list via Online Services for Agents isn’t available, the ATO “proactively works with business and their agents in respect of their TPAR obligations”.
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“Prior to the TPAR lodgment due date, we write to taxpayers and provide tax agents with a list of clients we expect need to lodge a TPAR,” the ATO said.
“Following the due date, we also provide tax agents with a list of clients who have not yet lodged. In addition, taxpayers are sent up to three reminder notices informing them their TPAR lodgment is outstanding.”
The ATO also stated that it “welcomes feedback from the tax profession on how it can work with them to support their clients meet their reporting obligations”.
“Where a tax agent needs assistance with a client’s TPAR, we encourage them to contact us via their online services account,” the Tax Office stated.
The complaints raised by the tax profession follow recent warnings issued by the ATO in late February, stating that it would begin applying failure to lodge penalties for those with an overdue TPAR from 22 March, which tax agents have described as “heavy-handed”.
Practitioners have also raised concerns about the 28 August lodgment deadline for TPAR being unrealistic, given that tax returns aren’t due then.
“Insane that [the ATO] expect this to be lodged by 28th August each year when no tax return would even be due then and most accountants need time to reconcile the contractor’s balance to the TPAR at year end when preparing the final reports to ensure nothing is missed and everything matches,” said one commenter on Accountants Daily.
“Also, it just so happens to be one of the busiest periods of the year.”
Practitioners are also concerned about the upcoming not-for-profit self-review returns about how they will be able to access data on which clients need to report.
The ATO has advised that registered tax agents will be able to view their NFP clients’ self-review role via OSFA.
“From 1 July 2024, registered tax agents who use commercial tax practitioner software will have visibility of their NFP clients using the SBR Lodgment List service if their software is configured,” the Tax Office stated.
“The NFP self-review return will be available for lodgment using the ATO’s online services platform. Not-for-profits can lodge through Online Services for Business and registered tax agents can lodge through Online Services for Agents (OSFA).”
Tax agents have also expressed frustration with the processes for many existing reporting obligations, including fringe benefits tax with tax agents manually emailing or lodging a request to the ATO in order to receive an up to date list.
Activity statements also need to be manually downloaded while debt balances are updated fortnightly by the ATO.
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