New GST withholding regime

Discussion in 'Accounting & Tax' started by Mike A, 12th Jun, 2018.

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  1. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    no
     
    Terry_w, 11th Apr, 2019
    #21
    alicudi likes this.
  2. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    No

    When you buy the property you will pay the full price. However your solicitor will take 7% and instead of handing that portion to the vendor he pays it direct to the ATO. They get 93% on the day. When they lodge the BAS they will do that normally and the ATO will credit their tax debt the 7% and settle it up with them. You have no further GST or vendor involvement after settlement.

    The ATO are making your soliciitor hand over the GST estimate direct to them to limit avoidance. Its nothing specific to them but a whole regime intended to limit dodgy dealings. See if you dont play by the rules the ATO can come after the 7% from you.
     
    Paul@PAS, 11th Apr, 2019
    #22
    alicudi likes this.
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