With the OSR conducting a large number of payroll tax audits, law firm issues a warning to T&L operators
Transport operators are among a range of businesses being warned about potential payroll task risk issues on the back of a number of Office of State Revenue (OSR) audits.
For transport and logistics companies the issues pertain to contractors and the grouping provisions in the payroll tax act.
Holding a webinar to answer the main concerns coming through its office in response to recent audits, Cooper Grace Ward Lawyers senior associate Murray Shume says for ATN readers “we would imagine that the particular relevant issue is whether contractor payments create potential payroll tax liabilities.”
“There are ‘employment agency provisions’ in all state payroll tax legislation that potentially pick up contractor payments that large transport operator make to their sub-contractors,” he says.
“The other issue of interest is when different entities are grouped for the purposes of calculating payroll tax.
“The grouping provisions in the payroll tax act produce some surprising results, which could mean significant payroll tax liabilities.”
While it will be aimed more at accountants and advisors, Shume says the issues covered “would certainly be of interest to some of the larger transport and logistics companies” and “the grouping issues would also be relevant for the smaller logistic enterprises.”
Scheduled for October 9 at 12:30 AEST, the Cooper Grace Ward the webinar will examine:
- case studies on structures in family businesses that result in grouping – and what can be done to reduce the effects of inadvertent grouping
- contract drafting tips to reduce the risk of the OSR applying the employment agent provisions to genuine subcontracts
- setting up systems to identify taxable and exempt payments to contractors
- how to manage voluntary disclosures to the OSR
- setting the limits of your obligations to advise on payroll tax on an ongoing basis.
Further details and booking information available here.