{"id":574,"date":"2017-11-24T11:00:04","date_gmt":"2017-11-24T00:00:04","guid":{"rendered":"https:\/\/mnygroup.wpengine.com\/?p=574"},"modified":"2025-02-01T15:44:32","modified_gmt":"2025-02-01T04:44:32","slug":"ato-warning-check-if-you-have-made-a-mistake-on-gst","status":"publish","type":"post","link":"https:\/\/mnygroup.com.au\/en\/ato-warning-check-if-you-have-made-a-mistake-on-gst\/","title":{"rendered":"[ATO Warning] Check if you have made a mistake on GST"},"content":{"rendered":"<p>As tax professionals we have been reminded by the ATO of a misconception that some taxpayers continue to make each income year regarding their eligibility to make claims for GST credits.<\/p>\n<p>The reminder,\u00a0issued in the middle\u00a0of the third quarter of the 2017-18 income year, seeks to enlist the help of tax agents at more of a \u201cfrontline\u201d point \u2014<strong> before an audit or ATO review uncovers these type of client errors.<\/strong><\/p>\n<p>The type of taxpayer practitioners need to keep an eye on, says the ATO, are <strong>those who conduct irregular activity that brings in occasional income but no profit.<\/strong> These taxpayers may not be aware that <strong>they may be engaged in a hobby, rather than a business.<\/strong> As such, they are unable to claim GST credits on any purchases made in relation to that activity.<\/p>\n<p>To claim GST credits, the ATO reminds practitioners that client must be able to <strong>demonstrate they are in business with an intention to make a profit. It says there are factors it will look out for to support this<\/strong>, including:<\/p>\n<ul>\n<li><em>having a current business plan<\/em><\/li>\n<li><em>repetition of the income producing activity<\/em><\/li>\n<li><em>the size and scale of the activity being consistent with other businesses in that industry<\/em><\/li>\n<li><em>commercial sales<\/em><\/li>\n<li><em>marketing and advertising their activity to attract clients.<\/em><\/li>\n<\/ul>\n<p>For clients who are actually performing a hobby, and not a business, the ATO advice is to seek a cancellation of GST registration. It may also be necessary to look at amending past activity statements if the client has claimed GST credits for purchases associated with their activity.<\/p>\n<p><em><strong>If you are confused about whether you are in business or not, we can definitely help!<\/strong><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":18,"featured_media":576,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1691],"tags":[],"class_list":["post-574","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-tax","masonry-post","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-20"],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/mnygroup.com.au\/en\/wp-json\/wp\/v2\/posts\/574","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mnygroup.com.au\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mnygroup.com.au\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mnygroup.com.au\/en\/wp-json\/wp\/v2\/users\/18"}],"replies":[{"embeddable":true,"href":"https:\/\/mnygroup.com.au\/en\/wp-json\/wp\/v2\/comments?post=574"}],"version-history":[{"count":0,"href":"https:\/\/mnygroup.com.au\/en\/wp-json\/wp\/v2\/posts\/574\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mnygroup.com.au\/en\/wp-json\/wp\/v2\/media\/576"}],"wp:attachment":[{"href":"https:\/\/mnygroup.com.au\/en\/wp-json\/wp\/v2\/media?parent=574"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mnygroup.com.au\/en\/wp-json\/wp\/v2\/categories?post=574"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mnygroup.com.au\/en\/wp-json\/wp\/v2\/tags?post=574"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}