New guidelines for professional services firms - lawyers, architects, medical practitioners etc., came into effect on 1 July 2022.
The
guidance takes a strong stance on structures designed to divert income in a way that results in principal practitioners receiving relatively
small amounts of income personally for their work and reducing their taxable income.
The ATO is now contacting professionals who they believe might be at risk. Any structural changes that need to be made to reduce risk, should be completed by the end of the 2022-23 financial year.
Where the ATO deems that income has been diverted inappropriately to create a tax benefit, they will remove that benefit and significant
penalties may apply.
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The Taxable Payments Annual Report (TPAR) is a mandatory report for Australian businesses in certain industries to disclose contractor payments to the ATO by August 28 each year, ensuring accurate tax reporting.
Starting July 1st, 2024, non-profit organisations (NFPs) in Australia with an ABN, but not recognised as charitable, must annually submit a NFP self-review return to the ATO to confirm their tax exemption status. This process involves three main sections:
