a) “YES” to this question, the beneficiary does not receive a GST for deliveries covered by this Agreement. If an electronic agreement is used (e.g. B an email), you must have appropriate IT controls in place to ensure the security and accuracy of the agreement. You and the beneficiary may terminate a voluntary agreement at any time by notifying the other party in writing. We do not need to be informed of the termination of the contract or changes to the voluntary agreement. As a general rule, you do not have to withhold amounts for payments you make to contractors. However, you and a contract worker (beneficiary) can enter into a voluntary agreement to withhold an amount of tax on each payment you pay them. This is a good way to help independent contractors meet their tax obligations. Payers are required to provide annual reports each fiscal year on all payments made under voluntary agreements with us. We use this information to verify the information contained in tax returns. However, if the recipient is registered for GST, the recipient may claim GST credits for all GST credits paid for items that the recipient purchases and uses to perform the work under the voluntary agreement. If Francesca and Ashfield Accounting did not agree to use their CIR, the retention rate would be 20%.
A voluntary agreement may cover a specific task or apply to successive agreements between you and the beneficiary. Retained on a distribution basis – voluntary agreements (NAT 3063). Francesca is a marketing consultant who generates revenue from many sources. It has a voluntary agreement with Ashfield Accounting (its largest payer) and they have agreed to use their CIR of 16.44%. The payer and the payee must keep a copy of the voluntary agreement for as long as it is in force and five years after the last payment under the agreement. There is no need to send us copies. Download form Voluntary Agreement for PAYG Deduction (NAT 2772 PDF 204KB). If the beneficiary is informed for the first time of their CIR or informed of a new CIR, you may need to enter into a new agreement after taking into account the withholding rate. Jim manages a computer programming business and enters into contracts with Big Bank Inc. .