The Tax Workshop is perfect for sole practitioners and small practices, offering practical, expert-led sessions designed to refresh your knowledge and keep you ahead in the ever-changing tax landscape.

The following topics will be covered in the May session:

Tax Brief

What we cover: Our Tax Brief is a review of the current tax landscape to keep you up-to-date with any changes and current news.

Alienation, Professional Practices and Part IVA

Alienation arrangements where an individual’s personal services income (PSI) is derived through a personal service entity (PSE) that is conducting a personal service business (PSB) and profits are shared with related parties are at risk of being subject to the anti-avoidance provision in Part IVA. 

The Commissioner’s view about PSI, PSEs and PSBs is set out in 271 paragraphs in TR 2022/3. Whether Part IVA applies to particular arrangements will always depend on the particular facts and circumstances – it will apply if a dominant purpose of the arrangement was to obtain a tax benefit. 

The Commissioner’s compliance guideline addresses aspects of an arrangement that may attract the ATO’s attention and hence raise questions about tax benefits and purpose

In this session, which builds on our previous topic Tax issues for professional practices, we consider:

• The basis for the Commissioner’s view that income of professionals cannot be split with family members
• Some reasons why the Tax Commissioner might be relying on the threat of applying Part IVA to arrangements entered into by professional persons/practitioners to rein in what was perceived to be rampant income splitting
• The difference between income of a personal services business and income from a business structure
• The two thresholds or gateways which an arrangement entered into by an individual professional practitioner should pass as a prerequisite to self assessing tax risk associated with a profit allocation
• How to calculate the effective tax rate for allocations of a professional firm’s profits in accordance with the Commissioner’s PCG 2021/4 for an individual professional practitioner and their associates in a simple case
• Indicators that are considered high risk and factors that will be a red flag to the Commissioner

All TaxBanter tax training qualifies as eligible CPE/CPD hours.