Life, Death and Taxes – Insights by Mr Henshaw

THE EMPIRE STRIKES BACK: THE NEW GST WITHHOLDING REGIME

Ordinarily, vendors pay GST on the value of the taxable supplies that they make. Vendors will sell goods or services for a price that includes a GST component. When it comes time to lodge their BAS, the vendor will then pay that GST component to the ATO. There may be a three or four months delay between a vendor receiving a purchase price (including the GST component), and having to pay the GST to the ATO.

In recent times, the ATO and the government have become increasingly concerned that some property developers collect the GST on a sale, but ultimately do not pay GST. The ATO have also publicly acknowledged that their enforcement and detection methods are not effective.

Level 12, 360 Elizabeth Street,
Melbourne VIC 3000

Level 12, 360 Elizabeth Street,
Melbourne VIC 3000

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