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Claiming GST on a build

Discussion in 'Accounting & Tax' started by Paul@PFI, 11th Aug, 2015.

  1. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

    18th Jun, 2015
    One of the ways the ATO easily accesses data for developer type activities is through monitoring property transactions. One of the common mistakes many taxpayers make is claiming GST when they buy a property, or land or when they start to build. The usual situation is a GST refund....That's a audit target. Esp for a new ABN or where a trail of zero lodgements has occurred in the past.

    So they send you this form..(attached).

    Careful how you answer it. Real careful. Its where that catch the sheep that has wandered from the flock. The taxpayers who didn't get advice or just relied on gut feel or posts on PC. (Yes I get a few a year of those who seek advice after the event)

    Q1 : Incorrect ABN use. Even no ABN !!
    Q3. Target is developer activities.
    Q5 : This is all about GST. Loads of traps here. The answers WILL result in requests for further information or a telephone call. Incorrect answers can also result in penalties. Take care. Seek advice.
    Q6 : Entitlement to GST ? Not all GST can be claimed.
    Q7&8 are information gathering and intelligence. You may also get questioned about contractors you pay. The ATO would certainly check the invoices they give you that you have paid (a sample).

    And of course the information will later be used to check compliance with reportable contractor payments.

    Attached Files:

    Terry_w and Perthguy like this.