by PBS Partners | Aug 20, 2019 | Tax Advice
You can no longer claim deductions for payments to workers if you have not met your pay as you go (PAYG) withholding obligations. This applies to income tax returns lodged for the 2020 income year onwards.
Reminder if PAYG withholding rules require an amount to be withheld, you must:
You will not lose your deduction if they withhold:
You will only lose your deduction if no amount is withheld or reported to the ATO, unless you voluntarily disclose this before they examine your affairs.
This measure aims to level the playing field for honest businesses doing the right thing by their workers. It is part of the government’s response to recommendations from the Black Economy Taskforce.