CISR43650 - Register and maintain subcontractor: gross payment or payment under deduction: 'Ad hoc' Tax Treatment Qualification Test (TTQT)
| CISR43000 | Information contents |
From 15th October 2007, there will be a facility to run a
'one off' or what is called an 'ad-hoc' Tax Treatment Qualification
Test (TTQT). This could be requested where you felt that the
subcontractor was not meeting their compliance obligations and yet
the annual TTQT was not yet due for sometime. This 'ad-hoc' TTQT
will notify the subcontractor of their loss of gross payment status
by issue of a CIS308 with a 90 day notice period of when this
change will take place. There are circumstances where an 'ad-hoc'
TTQT cannot be requested and for details of see
CISR43080 for further information.
To Request an 'ad-hoc' TTQT, from the CIS Main menu
- Select [Manage TTQT]
This will take you to the 'Tax Treatment Details' window. Here you will find displayed the following information:
- Current Tax Treatment – Net or Gross
- Tax Treatment under appeal – Yes or No
- Date Next TTQT – The date of the next annual review of the subcontractor’s tax treatment where gross payment status is held.
- TTQT results pending for – this will show you whether the subcontractor has made a request for gross payment status, for which the result of the TTQT is still pending.
- Request date – this will show the date of the request where the subcontractor has made an application for gross payment status already, for which the result of the TTQT is still pending.
Under the title bar 'Tax Treatment History' on this window you will also find displayed
- The start and any end date of a particular type of tax treatment
- The tax treatment either Net or Gross
- The reason that prompted the change in tax treatment, examples are on Registration or Annual (Scheduled) Review.
Finally on this window will be displayed the TTQT History, under this title bar will be displayed
- Date – The date the TTQT was requested.
- Type – This field will usually be blank, unless a previous TTQT came back with the result of 'Incomplete', in which case 'Manual' will appear here to indicate that the previous TTQT was completed manually.
- Result – The result of the TTQT either Pass or Fail.
- Status – The status of the TTQT result either confirmed or unconfirmed.
- Test Type – The type of occasion for which the TTQT was requested, either on first Registration, Request change of Tax Treatment or on Tax Treatment Review.
To request an 'Ad-hoc' TTQT
- Select the [Request TTQT] button at the bottom of the window
A message window will then be displayed saying 'This could potentially result in a change of Tax Treatment, continue? If you wish to continue
- Select [OK]
The TTQT will now run, and the results should be visible within
a few days. The subcontractor will
only be notified of their payment status, where
the result of the 'ad-hoc' TTQT is a 'Fail', and form CIS308 will
be issued to the subcontractor advising them of the failures found.
The subcontractor will be told that their payment status will be
changed to Net at a date 90 days after the TTQT was run, and the
subcontractor’s various contractor’s will be advised of
the change to make, with these notifications (CIS316) being issued
at 55 days after the TTQT was run.
Note An ‘Ad-hoc’ TTQT should
not be requested for an Unincorporated body
subcontractor, but instead you should make a request for an
‘Information only’ TTQT (See
CISR43660) where you believe that the
Unincorporated body is not meeting it’s Compliance
obligations. The results of any ‘Information only’ TTQT
should be submitted to the CIS Advisory Team (See
CISR97030) with the facts of the
case.
