My accountant has told me to put my PAYGI under account Taxation/Tax Payable but this doesn't make much sense to me. I had my GST on Purchases as $1923.00 and my PAYGI as $2723.00. So Ive drawn a cheque to the ATO for $800 and if the PAYGI was GST on Sales I can completely understand as I would put the GST on Sales in as a positive and the GST on Purchases as a negative, giving me the $800 payment when I do the transaction in Pay Tax. I get the same result when I put the PAYGI as a positive but I dont think I should report it to the same account. Should I be setting up a separate account for the PAYGI so that is doesn't effect the Tax Payable balance? Can anyone help?