Question

Mr. Jill is an accounting student and owner of a small coffee – shop, which he purchased this year. He usually comes to you for tax return once in a year. He tried to do his quarterly GST this year (2015) and make a small mistake on the GST report form. As given below:

1. At the total sales (G1) he wrote $ 10100.00
2. At the total Non-capital purchase option (G11) purchase options he wrote $ 9900.00 and
3. He calculated his GST accordingly and report the GST without omitting the decimal point (00.00).

With investigating the GST report The Auditor send him a letter informing he reported his total income $1010000 and Total Non-capital purchase of $ 990000 and requested him to provide the necessary documents about this GST reporting. Now, Jill came to you for advice as he believe that he did the right calculations. Now what would be your suggestion regarding:

1. What was the mistake that Jill made for reporting his GST?
2. Calculate the GST for Gill.
3. Properly Fill up the GST form for him.
4. What documents do Jill have to provide to ATO Auditor?

Answer 1

a. Jill made a mistake while reporting his GST. He reported his GST without omitting the decimal point.

b. The GST for Jill will be S10100 * 18% = 1818.

c. In the GST form, Sales will be $10100 and non capital purchases will be $9900.

d. Jill will have to provide tax invoices raised by him and bill for non-capital purchases.