Allocation of Profits by Professional Firms

CPD Seminar - 16 June 2021

Event Details

Please click the register button below to register for this webinar

  • Date 16/06/2021
  • Time 01:00 pm - 02:00 pm
  • Price Free
  • Chair: Greens List
  • Presenter: Bill Orow and Khai-Yin Lim
  • Compulsory Field: Substantive Law
  • CPD Units: 1
  • Venue Live GoToWebinar

Summary

Allocation of Profits by Professional Firms

Practical Compliance Guideline PCG 2021/D2 - ATO compliance approach


On 1 March 2021, the ATO released draft Practical Compliance Guideline PCG 2021/D2 to provide guidance for professionals when considering the allocation of profits by professional firms.


The guideline explains how the ATO intends to apply compliance resources when considering the allocation of professional firm profit or income in the assessable income of the individual professional practitioner (IPP). When finalised, the PCG is proposed to apply prospectively from 1 July 2021.


The revised guidance explains the Commissioner’s risk-based compliance approach, which requires two qualifying gateways to be passed before applying the risk assessment framework. Where an IPP passes the gateways, they then self-assess against the risk assessment framework to determine the type of compliance attention that will be given to their arrangement by the ATO.


The purpose of this seminar is to explain and identify issues raised by the guideline with particular focus on legal and accounting practices.