17 Jun 09 Review into the Alienation of Personal Services Income RulesIn a media release issued on 16 June 2009, the Chairman of the Board of Taxation, Mr Dick Warburton AO, announced that the Board is inviting submissions for its post-implementation review into the alienation of personal services income rules. The review was announced by the then Assistant Treasurer, Chris Bowen on 3 June 2009.
The Alienation of Personal Services Income provisions are integrity rules designed to address both the alienation of personal services income through interposing an entity and the capacity of individuals and interposed entities to claim higher deductions than employees providing the same or similar services. The provisions were introduced in 2000 and their effectiveness has not been formally reviewed.
The Board's intention in undertaking the post-implementation review is not to reopen debates about the merits of the policy intent of this measure. The intention instead is to gauge how effective the legislation has been in delivering the policy intent.
The closing date for submissions is 27 July 2009.
For a copy of the Board's media release, No 26, 16 June 2009, go here
For more information about the review and its terms of reference, go here