Published on 13 Mar 13
by NATIONAL DIVISION, THE TAX INSTITUTE
The Ralph Report concluded that another $500 million of revenue would be available to government if individuals within the tax system as contractors, were taxed as if they were employees. The competing stress of outsourcing, driven by employers seeking severally to avoid union regulation of work conditions, notice, severance pay, state payroll taxes, superannuation surcharge and other labour on-costs, was matched by such contractors wishing to reduce their tax liability by means of deductible expenses. Against that background, the Australian Taxation Office is charged with the enforcement of legislation designed to achieve that aim.
This paper looks at the PSI after 10 years of operation and considers the rules and:
- how are they being applied?
- what are the traps to watch out for?
- the likely impact of the Cameron case
- what else have the courts said?
Robert WF SCEALES
Rob has been in practice for more than 30 years, originally in South Africa and since 1986 in Australia. He is admitted as a Solicitor and Barrister of the High Court of Australia and the Supreme Court of Western Australia. He holds degrees in commerce (B.Comm) and law (LL.B.) and a Master of Laws (Income Tax). He also has post graduate diplomas in income tax and a post graduate diploma in corporate law. He is a past State Chairman of the Taxation Institute. He has also served on the Revenue Committee of the Law Society. He continues to serve on the Taxation Committee of the Law Council of Australia. He has given a number of papers to the Taxation Institute, the Australian Society of CPAs, the Institute of Chartered Accountants and the Law Society of Western Australia in the past. He is the principal of Sceales & Company, established in 1994. The firm practises in Taxation, Commercial and Corporate Law and related areas of practice.
Current at 8 June 2007 Current at 09 March 2009
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