Pay-roll tax is a tax faced by all growing businesses who take on new staff or outsource. It is a tax which is often overlooked in business expansion and business structuring plans.
Our firm is able to provide pay-roll tax advice which practically explains how pay-roll tax will affects a business’ expansion plans and how a business can minimises its pay-roll tax liabilities. In particular, our firm provides advice on:
- The contractor provisions of the Pay-roll Tax Act 2007 (“PTA”) (this affects businesses who engage contractors and subcontractors) ;
- The employment agency provisions of the PTA (this affects labour hire firms); and
- The grouping provisions of the PTA (this affects businesses who operate through a number of different entities such as companies and trusts).
The grouping provisions of the PTA are particularly important to be aware of as an inadequate structuring of business entities can lead to a denial of the tax free threshold for pay-roll tax and a higher pay-roll tax liability.
In addition to providing pay-roll tax advice, our firm also makes representations on behalf of our clients to the Office of State Revenue. This includes:
- The making of applications to the Commissioner to exercise his discretion not to group entities of a business under the grouping provisions of the PTA;
- Assisting clients in dealing with pay-roll tax audits and requests from the Office of State Revenue for information on certain transactions undertaken by clients; and
- Representing clients in pay-roll tax disputes with the Office of State Revenue (this includes engaging in informal review procedures within the Office of State Revenue, litigating such disputes through the courts and tribunals , and negotiating settlements of such disputes.