ATO taxpayer alert GST
February 19, 2019
The Australian Taxation Office has released a Taxpayer Alert in response to concern it has about developers potentially underreporting the value of taxable supplies and possibly underpaying GST.
The ATO has announced that it will review arrangements involving property developers acquiring land from government entities and providing development works on the land as payment, or partial payment, for that land. A major concern of the ATO appears to be misallocation of costs of development work. This ATO review would apply to land that is sold or is subject to a long term lease. Members who have been involved in such transaction in the past few years should read the Taxpayer Alert and consider obtaining accounting or tax advice if they believe that their transactions could be reviewed.
For a copy of the alert see ATO Website