Published on 21 May 01
by THE TAX INSTITUTE
The experience to date of the professional bodies (and the Tax Office) is that there is a widespread lack of understanding of Part 2-42 (APSI provisions) as well as mistaken beliefs in relation to the application and operation of the provisions. The mechanism by which the APSI provisions apply to individuals is somewhat unique. In addition, the personal service business (PSB) exception in Pt 2-42 to the provisions is easily confused with the concepts of 'business structure' (non-statutory exception), 'carrying on a business' (for income tax purposes), and 'enterprise' (for GST purposes) in other areas of taxation that affect individuals.
INSTITUTE OF CHARTERED ACCOUNTANTS IN AUSTRALIA
NATIONAL INSTITUTE OF ACCOUNTANTS
TAX POLICY & RESEARCH DIVISION