❓ A WA parliamentary question seeks information on retrospective payroll tax bills issued to businesses, particularly those resulting from reclassifying worker relationships. The response clarifies the number of assessments, amounts owed, assessment periods, and the Office of State Revenue's practices.
AnsweredQoN 1596Legislative Assembly
QuestionView source ↗
(1) How many Western Australian firms have received bills for retrospective payment of payroll tax in the current financial year?
(2) How many of the firms in (1) received bills for retrospective payment of payroll tax after a reclassification of the 'employer/contractor' relationship to 'employer/employee'?
(3) What is the total amount of payroll tax owed retrospectively by the firms in (1)?
(4) How many years do the retrospective payroll tax assessments extend?
(5) Why were the 'employer/contractor' relationships between the employers in (1) and their workers not reclassified into 'employer/employee' relationships by the Office of State Revenue until recently?
(6) Has there been any change to the Office of State Revenue's position on what constitutes an 'employer/contractor' relationship and what constitutes an 'employer/employee' relationship?
(7) If yes to (6), what is the nature of that change and when did its application commence?
(8) If yes to (6), did the Office of State Revenue conduct a public education campaign?
(2) How many of the firms in (1) received bills for retrospective payment of payroll tax after a reclassification of the 'employer/contractor' relationship to 'employer/employee'?
(3) What is the total amount of payroll tax owed retrospectively by the firms in (1)?
(4) How many years do the retrospective payroll tax assessments extend?
(5) Why were the 'employer/contractor' relationships between the employers in (1) and their workers not reclassified into 'employer/employee' relationships by the Office of State Revenue until recently?
(6) Has there been any change to the Office of State Revenue's position on what constitutes an 'employer/contractor' relationship and what constitutes an 'employer/employee' relationship?
(7) If yes to (6), what is the nature of that change and when did its application commence?
(8) If yes to (6), did the Office of State Revenue conduct a public education campaign?
AnswerView source ↗
Answered
15 May 2002
Response time
63 days
(2) Between 1 July 2001 and 28 February 2002, 119 assessments have been raised and issued where a proportion or all of the assessment related to an employer/employee determination. This compares with 140 such assessments raised and issued in the 2000/01 financial year. (3) Assessments totalling $17,149,957.71 were raised between 1 July 2001 and 28 February 2002. (4) While the current legislation provides no limit as to the number of years the Commissioner of State Revenue may retrospectively assess, it is the administrative practice of the Commissioner to examine on audit the previous five (5) financial years plus the current financial year. This practice is consistent with the underlying record keeping requirements of the pay-roll tax legislation where wages records are required to be kept for a period of not less than five years. Should evidence of evasion be apparent, assessments may extend over longer periods as the Commissioner sees fit. (5) Unless an employer self assesses correctly, or requests a determination from the Commissioner, these matters are only examined by the Office of State Revenue on audit. The assessments referred to arose from normal audit activity which has been undertaken and completed this year. However, it should be noted that employer/employee determinations of this nature have been made by the Commissioner since the relevant legislative provision was inserted into the legislation in 1982. It should also be noted that the number of audits for pay-roll tax undertaken by the Office of State Revenue has increased significantly over the last two years in response to an increase in resources provided to fund additional investigation officer positions which was provided in the 1999/2000 budget. (6) No. The Commissioner has consistently applied the common law position of what constitutes an employer/employee relationship. (7) Not applicable
(3) Assessments totalling $17,149,957.71 were raised between 1 July 2001 and 28 February 2002. (4) While the current legislation provides no limit as to the number of years the Commissioner of State Revenue may retrospectively assess, it is the administrative practice of the Commissioner to examine on audit the previous five (5) financial years plus the current financial year. This practice is consistent with the underlying record keeping requirements of the pay-roll tax legislation where wages records are required to be kept for a period of not less than five years. Should evidence of evasion be apparent, assessments may extend over longer periods as the Commissioner sees fit. (5) Unless an employer self assesses correctly, or requests a determination from the Commissioner, these matters are only examined by the Office of State Revenue on audit. The assessments referred to arose from normal audit activity which has been undertaken and completed this year. However, it should be noted that employer/employee determinations of this nature have been made by the Commissioner since the relevant legislative provision was inserted into the legislation in 1982. It should also be noted that the number of audits for pay-roll tax undertaken by the Office of State Revenue has increased significantly over the last two years in response to an increase in resources provided to fund additional investigation officer positions which was provided in the 1999/2000 budget. (6) No. The Commissioner has consistently applied the common law position of what constitutes an employer/employee relationship. (7) Not applicable
(4) While the current legislation provides no limit as to the number of years the Commissioner of State Revenue may retrospectively assess, it is the administrative practice of the Commissioner to examine on audit the previous five (5) financial years plus the current financial year. This practice is consistent with the underlying record keeping requirements of the pay-roll tax legislation where wages records are required to be kept for a period of not less than five years. Should evidence of evasion be apparent, assessments may extend over longer periods as the Commissioner sees fit. (5) Unless an employer self assesses correctly, or requests a determination from the Commissioner, these matters are only examined by the Office of State Revenue on audit. The assessments referred to arose from normal audit activity which has been undertaken and completed this year. However, it should be noted that employer/employee determinations of this nature have been made by the Commissioner since the relevant legislative provision was inserted into the legislation in 1982. It should also be noted that the number of audits for pay-roll tax undertaken by the Office of State Revenue has increased significantly over the last two years in response to an increase in resources provided to fund additional investigation officer positions which was provided in the 1999/2000 budget. (6) No. The Commissioner has consistently applied the common law position of what constitutes an employer/employee relationship. (7) Not applicable
(5) Unless an employer self assesses correctly, or requests a determination from the Commissioner, these matters are only examined by the Office of State Revenue on audit. The assessments referred to arose from normal audit activity which has been undertaken and completed this year. However, it should be noted that employer/employee determinations of this nature have been made by the Commissioner since the relevant legislative provision was inserted into the legislation in 1982. It should also be noted that the number of audits for pay-roll tax undertaken by the Office of State Revenue has increased significantly over the last two years in response to an increase in resources provided to fund additional investigation officer positions which was provided in the 1999/2000 budget. (6) No. The Commissioner has consistently applied the common law position of what constitutes an employer/employee relationship. (7) Not applicable
The assessments referred to arose from normal audit activity which has been undertaken and completed this year. However, it should be noted that employer/employee determinations of this nature have been made by the Commissioner since the relevant legislative provision was inserted into the legislation in 1982. It should also be noted that the number of audits for pay-roll tax undertaken by the Office of State Revenue has increased significantly over the last two years in response to an increase in resources provided to fund additional investigation officer positions which was provided in the 1999/2000 budget. (6) No. The Commissioner has consistently applied the common law position of what constitutes an employer/employee relationship. (7) Not applicable
(6) No. The Commissioner has consistently applied the common law position of what constitutes an employer/employee relationship. (7) Not applicable
(7) Not applicable
(3) Assessments totalling $17,149,957.71 were raised between 1 July 2001 and 28 February 2002. (4) While the current legislation provides no limit as to the number of years the Commissioner of State Revenue may retrospectively assess, it is the administrative practice of the Commissioner to examine on audit the previous five (5) financial years plus the current financial year. This practice is consistent with the underlying record keeping requirements of the pay-roll tax legislation where wages records are required to be kept for a period of not less than five years. Should evidence of evasion be apparent, assessments may extend over longer periods as the Commissioner sees fit. (5) Unless an employer self assesses correctly, or requests a determination from the Commissioner, these matters are only examined by the Office of State Revenue on audit. The assessments referred to arose from normal audit activity which has been undertaken and completed this year. However, it should be noted that employer/employee determinations of this nature have been made by the Commissioner since the relevant legislative provision was inserted into the legislation in 1982. It should also be noted that the number of audits for pay-roll tax undertaken by the Office of State Revenue has increased significantly over the last two years in response to an increase in resources provided to fund additional investigation officer positions which was provided in the 1999/2000 budget. (6) No. The Commissioner has consistently applied the common law position of what constitutes an employer/employee relationship. (7) Not applicable
(4) While the current legislation provides no limit as to the number of years the Commissioner of State Revenue may retrospectively assess, it is the administrative practice of the Commissioner to examine on audit the previous five (5) financial years plus the current financial year. This practice is consistent with the underlying record keeping requirements of the pay-roll tax legislation where wages records are required to be kept for a period of not less than five years. Should evidence of evasion be apparent, assessments may extend over longer periods as the Commissioner sees fit. (5) Unless an employer self assesses correctly, or requests a determination from the Commissioner, these matters are only examined by the Office of State Revenue on audit. The assessments referred to arose from normal audit activity which has been undertaken and completed this year. However, it should be noted that employer/employee determinations of this nature have been made by the Commissioner since the relevant legislative provision was inserted into the legislation in 1982. It should also be noted that the number of audits for pay-roll tax undertaken by the Office of State Revenue has increased significantly over the last two years in response to an increase in resources provided to fund additional investigation officer positions which was provided in the 1999/2000 budget. (6) No. The Commissioner has consistently applied the common law position of what constitutes an employer/employee relationship. (7) Not applicable
(5) Unless an employer self assesses correctly, or requests a determination from the Commissioner, these matters are only examined by the Office of State Revenue on audit. The assessments referred to arose from normal audit activity which has been undertaken and completed this year. However, it should be noted that employer/employee determinations of this nature have been made by the Commissioner since the relevant legislative provision was inserted into the legislation in 1982. It should also be noted that the number of audits for pay-roll tax undertaken by the Office of State Revenue has increased significantly over the last two years in response to an increase in resources provided to fund additional investigation officer positions which was provided in the 1999/2000 budget. (6) No. The Commissioner has consistently applied the common law position of what constitutes an employer/employee relationship. (7) Not applicable
The assessments referred to arose from normal audit activity which has been undertaken and completed this year. However, it should be noted that employer/employee determinations of this nature have been made by the Commissioner since the relevant legislative provision was inserted into the legislation in 1982. It should also be noted that the number of audits for pay-roll tax undertaken by the Office of State Revenue has increased significantly over the last two years in response to an increase in resources provided to fund additional investigation officer positions which was provided in the 1999/2000 budget. (6) No. The Commissioner has consistently applied the common law position of what constitutes an employer/employee relationship. (7) Not applicable
(6) No. The Commissioner has consistently applied the common law position of what constitutes an employer/employee relationship. (7) Not applicable
(7) Not applicable
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