17 Dec 099 Post-implementation review of PSI Rules report published
In a media release issued on 16 December 2009, the Assistant Treasurer, Senator Nick Sherry, announced the release of the Board of Taxation's review into whether the tax rules on the alienation of personal services income (PSI) are proving effective, including in curtailing the use of sham contracting arrangements.
"The Board has concluded that while the current rules have gone some way in achieving their intention of improving integrity and equity in the tax system, the extent of this improvement is inadequate. The Board has found evidence of a low level of compliance and a degree of uncertainty or 'greyness' around the rules, such that it has found the alienation of personal services income rules in their current form do not provide acceptable levels of integrity and equity...The Government will wait for the final report of the Henry Review before determining the appropriate action in this area," the Assistant Treasurer said.
For a copy of the Assistant Treasurer's media release, No 2009/109, 16 December 2009, go here
For a copy of the Board's report, October 2009, go here