The ATO attitude to professionals and others incorporating or choosing to share their income with others as a result of the structure they have chosen can be traced back to old ATO rulings such as IT2503 and IT276. This paper covers the evolving ATO view on incorporation of professional practices, the use of services trusts and question the current ‘state of play’.
The biggest asset of a professional practice is, in most cases, its business goodwill. The term‚ 'goodwill' is an elusive concept that is linked to the profitability and the custom of a business, and to its intangible value. This paper examines the goodwill of a professional practice, the ATO approach to professional goodwill and the implications for the practitioners including: