The draft guidelines will apply from 1 July 2021 and professional services including accountants, lawyers, architects, engineers, financial service providers, medical practitioners, among others, will all be affected.
The ATO is specifically concerned with professional practices operating through trusts, companies and partnerships of discretionary trusts and how the profits from these practices are being taxed.
Professional firms have clearly been put on notice that Part IVA could potentially apply depending on how profits of the firm are dealt with.
Please see below for the draft practical compliance guidelines, and we will keep you updated with further changes as they develop.
|If you have any questions please contact our office on (02) 8543 6800.|