TAX ALERT: ATO Review of Professional Practice Structures now in full force

 

From 1 July 2015, the Australian Taxation Office (‘ATO’) is actively reviewing professional structure arrangements in line with its recently updated guidelines (‘ATO Guidelines’) (the original draft guidelines were previously released in September 2014). The ATO Guidelines detail how the ATO will assess the audit risk in relation to profits paid from professional practices, to be identified upon the lodgement of an individual’s (who is connected with a professional firm) tax return for the 2015 year and onwards. Services targeted under the ATO Guidelines include, but are not limited to, firms in the accounting, architectural, engineering, financial services, legal and medical professions.

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