Start a new discussion
A recent CPA article noted the following:
"The ATO has recently highlighted business activity statements as one of their areas of focus, so it's imperative you increase your competence in preparing your BAS".
CPA were using this to encourage BAS training courses. I prefer to use it to bring to the attention the body corporate’s responsibility when it comes to BAS.
There is a belief in some Committees that the ATO BAS rules do not apply to bodies corporate or in some way the requirements are lessoned. This is simply not the case. The Body Corporate is responsible for ensuring that valid tax invoices are supplied and processed by the body corporate. Common mistakes being found are:
- The words Tax Invoice not appearing on the invoice
- The Tax Invoice not being in the correct name. This includes being in the Building Manager’s name and not the name of the body corporate registered name.
- The ABN supplied does not relate to the supplier’s entity charging the GST.
- The supplier is charging GST but is not registered for GST.
Your Community Managers have been bringing this to the attention of suppliers on behalf of the body corporate. As there are more ATO Field Auditors in recent years, it is only a matter of time before an increased number of bodies corporate are audited. Adverse audit findings may result in penalties and interest charges. These can be avoided by following the guidelines for a Valid Tax Invoice as provided by the ATO. These can be found online at http://www.ato.gov.au/businesses/content.asp?doc=/content/50913.htm or ask your Community Manager for a copy.
