Client has used a subcontractor who has a legit ABN but is not registered for GST and has insisted the client pay with gift cards. This seems like tax avoidance but probably legal if the subcontractor issues an invoice but is the client obliged to do so and is their any ruling against it
They should get an invoice from the subcontractor and decide how they'll make payment. For them they should ensure they can prove payment was made to avoid any disputes later and to keep accurate records of all business transactions.
If a taxpayer receives a non-cash payment, they're responsible for declaring the value as income. We have info on our website via the link. Otherwise, there's no tax obligation that this method has to be used.
They should get an invoice from the subcontractor and decide how they'll make payment. For them they should ensure they can prove payment was made to avoid any disputes later and to keep accurate records of all business transactions.
If a taxpayer receives a non-cash payment, they're responsible for declaring the value as income. We have info on our website via the link. Otherwise, there's no tax obligation that this method has to be used.
22 Apr 2024 · 6 min read time
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