News

March 2019 update

Tax scammer alert

The ATO has again warned taxpayers to be alert for scammers impersonating the ATO, as it
appears they have changed tactics in 2019.

Specifically, the ATO is seeing the emergence of a new tactic where:

“scammers are using an ATO number to send fraudulent SMS messages to taxpayers asking
them to click on a link and hand over their personal details in order to obtain a refund”.

The ATO has received reports of scammers maliciously manipulating the calling line identification
so the phone number that appears is different to the number from which the call originated.

This is referred to as “spoofing” and is a common technique used by scammers to appear
legitimate.

It appears these scams aim to steal taxpayers' personal details and identities.
The ATO has advised it will not:

• send an email or SMS asking a taxpayer to click on a link to provide login, personal or
  financial information, or to download a file or open an attachment;
• use aggressive or rude behaviour, or threaten taxpayers with arrest, jail or deportation;
• request payment of a debt via iTunes or Google Play cards, pre-paid Visa cards,
  cryptocurrency or direct credit to a personal bank account; or
• request a fee in order to release a refund owed to taxpayers.

Editor: If you are unsure about a call, text message or email purportedly received from the ATO,
the best advice is not to reply.
Should you have any concerns, please contact our office directly, or alternatively you can call the
ATO on 1800 008 540 to check if the contact was legitimate or to report a scam.

Non-compliant payments to workers
The rules for claiming deductions for payments to workers are changing.
From 1 July 2019, businesses can only claim deductions for certain payments made to workers
where they've met the Pay As You Go (‘PAYG’) withholding obligation for that payment.

Specifically, a business can only claim a deduction for the following payments if it complies with
the relevant PAYG withholding rules:

• Salary, wages, commissions, bonuses or allowances to an employee.
• Directors’ fees.
• Payments to a religious practitioner.
• Payments made under a labour hire arrangement.
• Payments made for a supply of services (except from supplies of goods and real property)
  where the contractor has not provided their ABN.
  Where the PAYG withholding rules require an amount to be withheld, the business must:
• withhold the amount from the payment before they pay their worker; and
• report that amount to the ATO.

Importantly, a deduction will not be lost if an incorrect amount is withheld (or reported) by
mistake.

Please Note: Many of the comments in this publication are general in nature and anyone
intending to apply the information to practical circumstances should seek professional advice to
independently verify their interpretation and the information’s applicability to their particular
circumstances.