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Supplier wont provide a valid invoice and is threatening legal action for non payment

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I have a supplier who I have dealt with for roughly 10 years.

The supplier is based overseas and I have already reported them to the ATO for what I am about to detail below.

Recently when I refused to sign a personal guarantee for stock they became rather vindictive.

I had just receive a delivery from them and they started chasing me with a collection agency for payment almost as soon as I had received the stock.

As a result I started to look into their business and discovered they have not provided me with an abn/acn or company name or proof that they are registered for gst althought they charge me gst.   I have asked them repeatedly for their ABN so I can verify their identity but they just ignore my request and stopped ali payments to them until they provide the details.  

They say I have accepted liability for the debt and still have to pay them, but I don't see how I can pay them if they won't provide an ABN or a valid tax invoice.

They are threatening to make my company insolvent and I only have 5 days to respond to their solicitor.

The issue has continued on for over 3 months now and I removed the stock from sale as soon as I realised the situation and have not been able to get the correct information from them.

 

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ATO Certified Response

Former Community Support

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Hi @rebina,

 

Welcome to our Community!

 

Anyone carrying on a business should quote their ABN in relation to goods or services they supply to another business.

 

If they don’t, the payer must withhold 47% from the payment to the supplier unless exceptions apply, and send the withheld amount to the ATO. If the tax is not withheld, there should be sufficient records to be able to identify the reason for not withholding. You can find further information about no ABN withholding on our website.

 

We do take each report of tax evasion very seriously, however due to legislation and the privacy act we can't provide any details of the investigation.

 

Thanks, JodieH.

1 REPLY 1

Most helpful response

ATO Certified Response

Former Community Support

Replies 0

Hi @rebina,

 

Welcome to our Community!

 

Anyone carrying on a business should quote their ABN in relation to goods or services they supply to another business.

 

If they don’t, the payer must withhold 47% from the payment to the supplier unless exceptions apply, and send the withheld amount to the ATO. If the tax is not withheld, there should be sufficient records to be able to identify the reason for not withholding. You can find further information about no ABN withholding on our website.

 

We do take each report of tax evasion very seriously, however due to legislation and the privacy act we can't provide any details of the investigation.

 

Thanks, JodieH.