Login
iscover
A common client error with GST is something tax agents should watch out for as the tax profession edges closer towards its busy season.
ATO reminds accountants about common GST slip-up
06 February 2018
•
4 minute read
Clients who conduct irregular activity that generates income but nil profits are often not aware that they may have a hobby as opposed to a business, and may be unable to claim GST credits on their purchases.
The ATO is encouraging tax professionals to remind their clients they need to be able to show they are in business with intention to make a profit. Supporting factors can include documenting a business plan, commercial sales and marketing and advertising their activity to gain clients.
You’re out of free articles for this month
To continue reading the rest of this article, please log in.
Create free account to get unlimited news articles and more!
For those clients who are conducting a hobby, the ATO encourages tax professionals to cancel the GST registration of those clients.
Further, past activity statements should be amended if the clients have claimed GST credits for purchases associated with their hobby.
Other items on the ATO’s priority list for this year again include work-related deductions, which you can read more about here.
You need to be a member to post comments. Become a member for free today!
