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.
Granting employees’ access to company cars is treated by the ATO as a ‘non-cash benefit’, more commonly referred to as a fringe benefit.
New legislation before Parliament, if enacted, will make zero or low emission vehicles FBT-free. We explore who can access the concession and how.
An everyday occurrence across the business landscape in Australia is the practice of taking both existing and potential clients out for a meal to cement the business relationship, with the cost of this meal often covered by one party.
The ATO has signalled that there will be an increased focus on FBT this year. Given the ever-improving tools at the ATO’s disposal, in conjunction with the government’s need to raise additional revenues, it is important that employers ensure they remain compliant with their FBT requirements.
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