GST issues registers

Motor vehicle industry partnership

Issue 16 - PAYG withholding

16.a. Are spotters' fees subject to PAYG withholding?

Non-interpretative - straight application of the law.

The general rule for the payer is that they should withhold if an ABN has not been quoted, unless they are satisfied that the payment to the payee meets one of the exclusions from PAYG withholding.

In the absence of any other indicators that an enterprise is being carried on, the receipt of small infrequent amounts by individuals would not amount to carrying on an enterprise.

Where the entity receiving the fee is not carrying on an enterprise, the payer should get a statement from the payee indicating the nature of the payment eg the supply is not in the course or furtherance of an enterprise. The ATO form Statement by a supplier (NAT 3346) is appropriate.

Where the entity receiving the payment is carrying on an enterprise the ABN should be quoted.

16.b. Is the amount of the special credit for sales tax required to be included as instalment income at label T1?

Refer to 'view history' link in index.

© AUSTRALIAN TAXATION OFFICE FOR THE COMMONWEALTH OF AUSTRALIA

You are free to copy, adapt, modify, transmit and distribute this material as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).