Amnesty on pay-roll tax penalty for employers
Published Sunday, 12 October, 2008 at 01:10 PM
Treasurer
The Honourable Andrew Fraser
Employers who haven’t included payments to contractors on their pay-roll tax returns are being provided an amnesty on penalties.
Treasurer Andrew Fraser said the recent move to harmonise pay-roll tax with other states included new rules about contractor payments which clarified when tax should be paid.
Employers have until 31 March 2009 to review their contractor relationships and payments over the last three years to ensure they had met their obligations.
Mr Fraser said some employers may have incorrectly believed that no payments to contractors were taxable.
“Some payments to ‘contractors’ are liable for pay-roll tax because the true relationship between the parties is actually that of employer and employee,” Mr Fraser explained.
“While employers are implementing the new regime, the Commissioner of State Revenue is providing the opportunity to review contractor payments they have made in the last three financial years and clear up any outstanding pay-roll tax liability that existed under the previous law.”
Mr Fraser said most employers did try to do the right thing.
“Mistakes do happen, however, and the amnesty provides the opportunity for employers to meet their liabilities without being liable for substantial penalties which would normally apply,” he said.
“I urge employers to use the amnesty to check contractor payments. Employers who make voluntary disclosures now won’t be liable for penalty tax and for only 50% of unpaid tax interest.”
After the amnesty, outstanding pay-roll tax liabilities on contractor payments will again attract penalty tax (up to 75% of the tax unpaid) and unpaid tax interest of 14.37% per annum, depending on the circumstances and year in question.
Cases which aren’t disclosed voluntarily can be investigated by the Office of State Revenue.
Information to help employers establish if they should pay pay-roll tax is available on the OSR website www.osr.qld.gov.au.
Media Contact: Brendan Connell 32245982
Treasurer Andrew Fraser said the recent move to harmonise pay-roll tax with other states included new rules about contractor payments which clarified when tax should be paid.
Employers have until 31 March 2009 to review their contractor relationships and payments over the last three years to ensure they had met their obligations.
Mr Fraser said some employers may have incorrectly believed that no payments to contractors were taxable.
“Some payments to ‘contractors’ are liable for pay-roll tax because the true relationship between the parties is actually that of employer and employee,” Mr Fraser explained.
“While employers are implementing the new regime, the Commissioner of State Revenue is providing the opportunity to review contractor payments they have made in the last three financial years and clear up any outstanding pay-roll tax liability that existed under the previous law.”
Mr Fraser said most employers did try to do the right thing.
“Mistakes do happen, however, and the amnesty provides the opportunity for employers to meet their liabilities without being liable for substantial penalties which would normally apply,” he said.
“I urge employers to use the amnesty to check contractor payments. Employers who make voluntary disclosures now won’t be liable for penalty tax and for only 50% of unpaid tax interest.”
After the amnesty, outstanding pay-roll tax liabilities on contractor payments will again attract penalty tax (up to 75% of the tax unpaid) and unpaid tax interest of 14.37% per annum, depending on the circumstances and year in question.
Cases which aren’t disclosed voluntarily can be investigated by the Office of State Revenue.
Information to help employers establish if they should pay pay-roll tax is available on the OSR website www.osr.qld.gov.au.
Media Contact: Brendan Connell 32245982