March 2021 Tax Round Up - Professional services firms under fire
by Knowledge Shop Editor, on 01/04/21 08:42
The draft compliance guide on the profits of professional services firms has created a stir (PCG 2021/D2) - some firms previously rated as 'low risk' may now find that they are in a different category and have to restructure.
Our apologies for the sound disruption on Michael Carruthers sections of the tax round up.
There should be little surprise at the stance taken by the ATO. Broadly, where a practitioner receives income from the firm that is substantially less than the value of the services that are being provided then the Commissioner will consider applying the general anti-avoidance provisions in Part IVA or other integrity rules.
Inside this month:
- PCG 2021/D2 Allocation of professional firm profits and why the profits of professional services firms are under fire.
- The impact of the 1 July 2021 indexation changes on transfer balance cap the contribution caps.
- What you need to know about the new personal services income ruling that consolidates two previous rulings and where the differences lie
- The outcome of the Apted and Slatter cases testing access to the COVID-19 stimulus measures - why one taxpayer was successful and the other was not.