The Government has decided that the accreditation and withholding provisions of the new law to combat sales tax fraud in the computer industry will commence on 1 September 1998. From 1 September generally only accredited people will be entitled to obtain a range of personal computer goods sales tax-free.
Senator Rod Kemp, Assistant Treasurer, said that taxpayers who intend to apply for accreditation should lodge their applications with the Tax Office as soon as possible but no later than 31 July, in order for accreditation numbers to be issued in time for a 1 September start. Most businesses who would normally quote a sales tax registration number for these goods will need to be accredited. This includes dealers in the computer industry and businesses that purchase Part 7A goods which they incorporated into goods which they manufacture but which themselves are not Part 7A goods (eg EFTPOS equipment or fire alarms).
Early applications are also important to allow time for legitimate operators in the computer industry to have standing authorisations established.
The 1 September start date will strike a balance between getting the new arrangements working and providing adequate lead-time to the industry and those who need to apply for accreditation. In order to minimise evasion in the lead up to 1 September the Tax Office will intensify its enforcement activities in the computer industry.
Senator Kemp said that he had asked the Tax Office to inform affected taxpayer groups of the new arrangements as quickly as possible. Operators in the computer industry should inform their customers (particularly those in other industries) about the new arrangements, and the need for some customers to become accredited.
The Tax Office has established a help line, phone 1800 634 905 to answer questions about the new law and and provide applications for accreditation. Information can also be obtained and applications for accreditation lodged through the Tax Offices Internet site, ATOassist, at www.ato.gov.au.
24 June 1998
CANBERRA
Contact:
Penny Farnsworth
(Assistant Treasurers office)
02 62777360
Mike Cebalo
(Tax Office)
02 62162233