05 Sep 14
Preamble – 5 September 2014
Professional Practice Structures
This week the ATO released draft guidelines on the tax risks flowing from the use of partnerships of discretionary trusts and similar structures. You may read more detail about the ATO announcement below.
The Tax Institute acknowledges the ATO’s need to risk-assess professional practices, but this work should not taint legitimate business structures.
Unfortunately, the guidelines are a blunt instrument based on effective tax rates rather than legislation and case law. The ATO must consult widely and publicly before finalising these guidelines to ensure that they are based on an understanding of how professional practices function in today’s economy.
Parliamentary Committee for Tax and Revenue
Further to our appearance at the Committee last week, the Hansard containing the evidence of both The Tax Institute and the ATO is now available.
The Committee hearing provided another opportunity for us to raise issues of concern to members, including the portal and the lodgement program.
Robert Jeremenko CTA