Business: Correcting GST MistakesThe Australian Taxation Office has published guidelines for making corrections on Business Activity Statements (“Activity Statement Update”, Quarter 1 2003/04, NAT 9715-7.2003). Previously a mistake on a BAS needed to be corrected by re-submitting that BAS. Now, subject to limitations, you can make the correction on a subsequent BAS. This is a simpler and more logical process, especially when using Cadzow 2000 to generate the BAS because entries back-dated into a prior BAS period will be included in the next BAS automatically. So if you miss an entry, or claim input tax credits where none apply (or vice versa), you can simply make the change and it will flow to the next BAS rather than fiddle with making corrections to one that has already been submitted. Businesses with turnover up to $20m have 18 months to make the correction and it must be less than $5,000 (per BAS). For businesses with higher turnover, the correction period shortens but the allowable correction increases. Consult your accountant or the ATO for details (“Correcting GST Mistakes” 03/2002: http://www.ato.gov.au/businesses/content.asp?doc=/content/13104.htm). |