TPAR, or the Taxable Payments Annual Report, is an industry-specific report for businesses that makes payments to contractors or subcontractors. It applies to businesses that provides any of the following:
- Building and construction services
- Cleaning services
- Courier or road freight services
- Information technology (IT) services
- Security, investigation or surveillance services
- Government entities
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.
For more information, visit the ATO website.