PCG2021/4 Professional Firm Profits
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Home • Services • Tax Planning
The ATO guidance (PCG 2021/4) totally changes the way that professional firm profits can be allocated (or split) among a family group from 1 July 2022 onwards.
As a result, most professionals will end up paying larger amounts of tax from the 2023 financial year onwards.
The new ATO guidelines requires Professional Firm clients (Eg, Accountant, lawyers, professional services, architects, engineers, etc) to annually review their allocation of professional firm profits and then to document their assessment of their eligibility to apply the PCG 2021/4 guidelines.
The Fringe Benefits Tax year (FBT) ends on 31 March. We explore the problem areas likely to attract the ATO’s attention.
New legislation before Parliament, if enacted, will make zero or low emission vehicles FBT-free. We explore who can access the concession and how.
Why should you lodge an FBT return where no FBT is payable? Well, for the simple reason that it turns on a three-year deadline for the ATO to commence audit activities. This is a NEW ATO rule as a result of massive deficits due to COVID. The ATO need to gain more funds somehow...FBT liability is one of the methods.
On 31 March, the Fringe Benefits Tax (FBT) year ends. With the ever increasing budget deficits, the ATO will be reviewing whether all employers who should be paying FBT are, and that they are paying the right amount. Who needs to lodge a FBT return? Find out here.
A car fringe benefit commonly arises when an employer makes a car they own or lease available for the private use of an employee.
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