format / Audience / Date / Classification
Electronic reporting specification
Pay as you go (PAYG) withholding where ABN not quoted annual report version 1.2.23
UNCLASSIFIED / For further information or questions, call 13 28 66
UNCLASSIFIED / ELECTRONIC REPORTING SPECIFICATION - PAY AS YOU GO (PAYG) WITHHOLDING WHERE ABN NOT QUOTED ANNUAL REPORT
CHANGES IN THIS VERSION OF THE SPECIFICATION
Difference between version 1.2.2 and version 1.2.3
General key changes
· General wording changes to allow for consistency, update and clarify information and processes.
· Removal of any reference to ECI being a lodgment channel from 25 June 2016.
Difference between version 1.2.1 and version 1.2.2
General key changes
§ The ATO is closing the lodgment service for electronic storage media and encouraging on line lodgment. Therefore, information on electronic storage media, including the electronic storage media information form, has been removed from this version of the specification.
§ General wording changes to allow for consistency, update and clarify information and processes.
§ Changes have not been tracked where sentences have been restructured and the intent/information has not changed.
§ Acronyms table has been updated.
§ Definitions table has been introduced.
§ Privacy information has been updated.
§ Section 3 Reporting procedures information has been updated.
§ Definition and edit rules column header for all data records commencing at page 14, has been changed to Reference number.
§ Section 6 Record specifications has been updated as a result of the removal of information on electronic storage media.
Changes to data records, values and definitions
§ Supplier data record 1 – There is no change to ATO Report specification version number field and associated data definition 7.9, it remains as FNOABNV1.2
Payment summary for Withholding where ABN not quoted events (other than those covered by Annual Investment Income Reporting).
A payer who has withheld tax from a payment must complete a payment summary and provide it to each payee:
§ at the time the payment is made, or
§ as soon as practicable afterwards.
The payment summary consists of two copies. One copy is to be given to the payee and the payer must retain the second copy.
Both the payer and payee must retain a copy of their payment summary for five years.
Please note that businesses can issue a receipt, remittance advice or similar document instead of the PAYG payment summary – Withholding where ABN not quoted.
If you choose to do this, the same rules as for the ATO payment summary apply. As a minimum, the document must contain the following information:
§ the payer’s name;
§ the payer’s Australian business number (ABN) or withholding payer number (WPN);
§ the payer’s Branch Number (if applicable);
§ the payee’s name (if known to the payer);
§ the payee’s address (if known to the payer);
§ the date on which the payment was made;
§ the amount of total payment, including the market value of non-cash benefits;
§ the amount of tax withheld; and
§ the wording “To be retained by payee for taxation purposes”.
This document must be in English and signed by the payer.
A payer is not required to lodge a copy of the payment summary with the ATO. A payer’s reporting obligations for ABN not quoted events are covered by the lodgment of the Withholding where ABN not quoted annual report.
ACRONYMS
Acronym / DescriptionABN / Australian business number
ATO / Australian Taxation Office
ECI / electronic commerce interface
PAYG / pay as you go
SILUSIPO / Software Industry Liaison UnitPartnership Office
TFN / tax file number
WPN / withholding payer number
DEFINITIONS
Common term / DefinitionPayee / For the purposes of this document, a payee is defined as a person who receives or is to receive a payment.
Payer / A payer is an entity that makes or will make a payment to a payee.
UNCLASSIFIED / i
UNCLASSIFIED / ELECTRONIC REPORTING SPECIFICATION - PAY AS YOU GO (PAYG) WITHHOLDING WHERE ABN NOT QUOTED ANNUAL REPORT
Table of contents
1 Introduction 1
Who should use this specification 1
Lodging online 1
2 Legal requirements 2
Reporting obligations 2
Other obligations 2
Retention of information 2
Extension of time to lodge 2
Use of ABNs 3
Privacy 3
Errors and amendments 4
3 Reporting procedures 5
Reporting for the first time 5
Test Facility 5
Accessing the test facility 6
Reporting online 6
Getting started 7
Backup of data 7
4 Physical specifications 8
5 Data file format 9
File content 9
Sort order of the report data file 9
File structure example 10
6 Record specifications 11
File name 11
CR, LF and EOF markers 11
Description of terms used in data record specifications 13
Supplier data record 1 15
Supplier data record 2 15
Supplier data record 3 16
Payer identity data record 17
Software data record 17
Payee data record 18
File total record 18
7 Data field definitions and validation rules 19
Reporting of address details 19
Reporting of name fields 20
Currency for reporting 20
Field definitions and edit rules 21
8 Example of data file structure 29
Supplier data record 1 29
Supplier data record 2 30
Supplier data record 3 30
Payer identity data record 31
Software data record 31
Payee data record 32
File total record 32
9 Algorithms 33
ABN algorithm 33
ABN Lookup 33
TFN algorithm 33
WPN Algorithm 34
10 More information 35
Electronic specifications 35
Payer enquiries 35
Other enquiries 35
Software developers homepage 35
11 Checklist 37
UNCLASSIFIED / vUNCLASSIFIED / ELECTRONIC REPORTING SPECIFICATION - PAY AS YOU GO (PAYG) WITHHOLDING WHERE ABN NOT QUOTED ANNUAL REPORT
1 Introduction
Who should use this specification
This specification is to be used in the development of software for the lodgment of electronic versions of the Withholding where ABN not quoted annual report to the Australian Taxation Office (ATO) for the 2003 or later financial years, effective from 25 June 2016.
This specification is intended for use by:
§ software developers
§ payers developing software in-house
§ computer service providers developing software in-house
This specification is not intended to, nor does it provide a guide to the relevant legislation.
Lodging online
Payers and other organisations can only lodge reports online using the Business portal, Tax Agent and BAS agent portals. Online lodgment enables suppliers to: the Withholding where no ABN quoted annual report online through our free electronic commerce interface (ECI) software.
Lodging online will:
§ reduce paperwork
§ provide a secure way for reports to be lodged
§ be available 24 hours a day, 7 days a week
§ provide an online receipt when the report is lodged, and
§ ensure that all of the necessary fields to lodge your report have been completed, via its in-built checks.
2 Legal requirements
Reporting obligations
Under the Taxation Administration Act 1953, payers are required to report to the ATO details of payments for goods and services, from which an amount was required to be withheld, where the payee has failed to provide an Australian business number (ABN). The legislation requires payers to report the details of such transactions made during the financial year.
This report does not cover ABN not quoted payments from investment income made by investment bodies. Investment bodies are to report ABN not quoted payments, together with other investment income, in the Annual investment income report (AIIR).
The Income Tax Assessment Act 1936 requires payers that have the capacity to store information on a computer to supply the information to the Commissioner of Taxation in a form suitable for processing by the ATO computer system. The legislation, however, does not require organisations to establish computer systems to store information.
Payers must provide the Withholding where ABN not quoted annual report to the Commissioner no later than 31 October after the end of each financial year.
Other obligations
Reporters of the electronic Withholding where ABN not quoted annual report must ensure that the information provided is up-to-date, accurate and complete. Failure to comply may result in a breach of the Income Tax Legislation.
Retention of information
Under taxation law payers must keep Withholding where ABN not quoted annual report information for a statutory period of five (5) years. The information can be kept electronically.
A copy of the data file provided to the ATO must be able to be regenerated on request by the ATO (for example, where a problem has been encountered in processing of the information).
Extension of time to lodge
If you require additional time to lodge your annual report electronically phone 13 28 66
Use of ABNs
Under the provisions of A New Tax System (Australian Business Number) Act 1999, it is an offence to purport to identify yourself or an associated entity by using a number that is not an ABN as if it were an ABN, or by using an ABN that is not yours or the entity’s own ABN.
Privacy
The Privacy Act 1988 limits the collection, storage, use and disclosure of personal information about individuals by the ATO, other Commonwealth Government departments and agencies.
New private sector provisions in the Privacy Act also regulate the way many private sector organisations collect, use, secure and disclose personal information. The private sector provisions aim to give people greater control over the way information about them is handled in the private sector by requiring organisations to comply with ten national privacy principles. These principles give individuals the right to know what information an organisation holds about them and a right to correct that information if it is wrong.
The Privacy Commissioner’s Guidelines to the Australian Privacy Principles and other relevant information sheets are available at www.oaic.gov.au.
It is the responsibility of private sector organisations to obtain their own advice on the effect of privacy law, including the Australian Privacy Principles on their operations.
Registration with the Tax Practitioners Board
Under the Tax Agent Services Act 2009 (TASA), entities that provide a ‘tax agent service’ for a fee or reward are required to be registered with the Tax Practitioners Board (TPB). The TPB has released an information sheet to assist software providers who provide tax related software systems to understand the operation and impact of the tax agent services regime. In particular, the information sheet:
§ provides guidance on which situations may or may not require registration with the TPB as a tax or BAS agent; and
§ outlines procedures and processes that software providers need to have in place (where relevant) to ensure that they are not regarded as providing a tax agent service.
Therefore it is important for all software providers to be aware of the requirements of the TASA and, if appropriate, comply with the obligations that exist within it.
For mor information go to the Tax practitioner board website
Errors and amendments
If a payer wants to amend a Withholding where ABN not quoted annual report to correct an error after the electronic report has been lodged with the ATO, the payer should issue an explanatory letter detailing the necessary adjustments to any affected payees. A copy of these letters should also be sent to:
Australian Taxation Office
Locked Bag 50
PENRITH NSW 2740
Payers who have questions about Withholding where ABN not quoted events or Pay as you go (PAYG) withholding in general should contact the ATO on 13 28 66.
3 Reporting procedures
Reporting for the first time
Software developers developing reporting software for the electronic generation of Withholding where ABN not quoted annual reports should refer to this specification for developing their application. Information is also available on the Software developers homepage website at http://softwaredevelopers.ato.gov.au/
The Software developers homepage website is maintained by the ATO on behalf of, and in consultation with, the software development industry and business advisers. It facilitates the development and listing of software which may assist businesses to meet their tax obligations.
Commercial software developers are required to register on the Software developers homepage website if they wish to list their products. Software developers who do not wish to list products do not need to register in order to access information. Subscribing for email updates is recommended for developers to be notified of significant issues and new and updated specifications.
Test data
The ATO has developed a Practice facility that software developers (including report developers and suppliers) may use to self-test the contents of their Withholding where ABN not quoted annual report.
The ATO ECI Practice facility can be downloaded and installed on a local computer and used offline to validate the information provided in annual report files.
The ECI Practice facility generates a comprehensive report of any errors detected during the validation process, which will help developers to correct their reports. This will help ensure that the accounting software package complies with this specification.
Installing the ECI Practice facility
Go to http://softwaredevelopers.ato.gov.au/links to read the installation instructions. When the application has been successfully installed and opened, go to the Business tab, then select PAYG summary reports and select No ABN Annual report.
Installing the ECI Practice facility will only allow you to perform testing functions.
For assistance with installing and using the ECI Practice facility:
§ phone 1300 139 373, or
§ email , or
§ web www.ato.gov.au/technicalhelpdesk.
Reporting online via ECI
Suppliers are able to submit their Withholding where ABN not Quoted Annual Report file via the ECI when a data file has been prepared and stored locally.
Data quality and format compatibility checks are performed by the ECI software when the data file is sent. The supplier is immediately advised of any problems. Automatic acknowledgment is provided when the files have been successfully received by the ATO.