The ATO has issued new guidance about when it will review and audit professional businesses, based on how they distribute profits to their principals and associated entities.The ATO is looking particularly at businesses operating in the accounting, architectural, engineering, financial services, medical services and legal industries. The ATO’s concern is that businesses in these industries are diverting income away from the individuals providing services, in a way that results in less tax.In PCG 2021/D2, the ATO sets out two ‘gateway’ tests, and then a scorecard, to determine whether a business’s arrangements are low, medium or high risk.
We are running a series of workshops, using case studies to work through the ATO’s draft PCG, as well as the correct application of the law.
After this workshop, you will be able to identify:
- whether a business’s income is personal services income or business income that is caught by the draft PCG
- whether a business passes the ATO’s first ‘gateway’ test of having a sound ‘commercial rationale’
- when the ATO is unlikely to accept ‘asset protection’ as a reason for a business’s structure
- the documents the ATO expects to see and be followed in practice
- specific types of arrangements that will cause a business to fail the ATO’s second ‘gateway’ test
- the information you need to complete the ATO’s scorecard for identifying risk
- the documents you will need to show that a business is in the low risk zone
- what happens if a business is in the medium or high risk zone.
As this is such a hot topic, we are running this session in multiple locations. All session will run from 12.00 pm to 2.00 pm with lunch provided on arrival. Please select your preferred location from the drop down menu below.
Rockhampton – 20 April 2021 – Empire Conference Centre – 5 East Street, Rockhampton, Qld, 4700
Mackay – 21 April 2021 – Rydges Mackay Suites – 9 Gregory Street, Mackay, Qld, 4740
Toowoomba – 21 April 2021 – Gips Restaurant, 120 Russell Street, Toowoomb, Qld, 4350
Cairns – 27 April 2021 – Pullman Cairns International – 17 Abbott St, Cairns City, Qld, 4870
Sunshine Coast – 27 April 2021 – Twin Waters Golf Club – 151 Ocean Drive, Twin Waters, Qld, 4564
Townsville – 28 April 2021 – Hotel Grand Chancellor – 334 Flinders Street, Townsville Qld, 4810
Gold Coast – 28 April 2021 – Mercure Gold Coast Resort – 64 Palm Meadows Drive, Carrara, Qld, 4211