TPAR, or the Taxable Payments Annual Report, is an industry specific report for businesses in the building and construction industry who are required to report the total payments made to contractors for building and construction services. This is reported to the ATO through the TPAR report.
This report allows the ATO to improve compliance with tax obligations by comparing the payments made by one contractor against the tax returns of the people they are in turn paying.
This helps the ATO to identify paid contractors who:
- Have not lodged tax returns
- Have not reported all their income in their tax returns.
The TPAR report is due by the 28th of August each year.