Question

Conduct the appropriate research and explain the ATO’s requirements in relation to:

Australian Business Number (ABN)

(100–120 words)

(Please note: Australian Tax - Please type answer only, hand writing hard to read)

Answer 1

The Australian Taxation Office is the statutory and principal revenue collection authority that has also prescribed Australian Business Number (ABN) for certain type of tax purposes like GST and PAYG as per Australian Tax Laws and tax payer has to register for ABN for doing any business related activities and to pay the tax obligation as per activity statement. This ABN is a 11 Digit unique tax payer identification number for easier tax compliance all tax payers whether resident in Australia and non-resident if carrying any business operation in Australia or generates any revenue which is connected with the Australia. Therefore, after applying for the Australian Business Number a separate Australian Company Number for Companies and Tax File Number for Sole Traders are required to mentions in the bill for sale of goods and services for easier identification of the transaction and involved parties. ABN should be updated in the Australian Business Register to pay the tax obligation as per the activity statement of the companies or sole traders. Australian Business Register is also helpful to verify the business identify which is provided by Australian Government to verify the details of the tax payer in secure manner.