Payroll Tax - Caught by the Grouping Provisions? - Expect a "nice letter" from the OSR soo

The Office of State Revenue is currently issuing notices to businesses that may be caught by the grouping provisions of the Payroll Tax Act 1971 (Qld).

Generally, payroll tax grouping seeks to combine multiple entities for the purposes of determining payroll tax liability. The grouping can be done amongst other things:

a) through related companies;

b) common control. eg common directors between two or more companies;

c) tracing of interests in corporations; and

d) use of common employees.

The payroll tax grouping provisions are very broad and the provisions have caught many businesses previously thought unscathed by payroll tax liability.

Do You Qualify for an Exclusion?

However, the Commissioner also has power to exclude an entity from a group. If you can demonstrate independence then you may qualify for the exclusion.

The Commissioner will have regard to the nature and degree of ownership and control of the business, the nature of the business and other relevant matters.

How We Can Help

We have assisted many business with their payroll tax obligations. If you think you may be caught by the grouping provisions of the Payroll Tax Act, we recommend we review your commercial arrangements before you are hit with penalties and interest.

We recommend action be taken immediately after reaching the threshold.

If you have received a Questionnaire or a Notice of Audit we recommend you act promptly and contact us to review your structures.

We can assist you in your dealings with the OSR including completing questionnaires, audits, liaising with the OSR officers, and objections.

For more information please contact: Evan Sarinas of Sarinas Legal.

This release is not intended as specific legal advice and all liability is disclaimed for reliance on it.