ATO flags common GST reporting errors and how to correct
The ATO has reported that some businesses are making simple mistakes reporting their GST. The ATO reminded taxpayers to avoid the following common GST reporting errors:
Transposition and calculation errors - such errors can occur when an amount is manually input. The ATO says these errors can be eliminated by double checking all figures and calculations before submitting a Business Activity Statement ("BAS").
Accounting systems - a system with one coding error can classify several transactions incorrectly. The ATO says taxpayers can check their business systems using the ATO's GST governance and risk management guide for large businesses.
Correcting GST errors
If a taxpayer finds a mistake made on a previous activity statement, the ATO says they can:
According to the ATO, the benefit of correcting a GST error on a later activity statement (where the conditions are met) is that the taxpayer will not be liable for any penalties or General Interest Charge ("GIC") for that error. The ATO says it is generally easier to correct a GST error on a later activity statement than to revise an earlier activity statement. Revising an earlier activity statement that contains an error can incur penalties or GIC.
If you'd like to get your GST affairs arranged, contact us today.