The Taxation of Professional Firm Profits

Just before Christmas, the ATO issued the final version of its Practice Compliance Guideline 2021/4 with its views on the taxation of professional firm profits.

The guideline focuses on the ATO’s concern over the redirection of income.

There is a modest relaxation from the original position which introduced the notion of categorizing firms’ results as being Green, Amber, or Red. The new position takes effect from 1 July 2022. 

Please contact George or Karen if you would like to discuss the ATO’s position.

by George Dingli