• Article Rating
  •  Average 2 out of 5
  • Update for professional firms allocating profit

    7 January 2022

    If you own or operate a professional firm, read about our updated guideline to find out if the way you distribute profit or income is compliant with your tax obligations.

    Professional firms include accounting, law, medical, engineering, architecture, management consulting and financial service practices.

    Under the new guideline that applies from 1 July 2022, you'll need to review your profit allocation arrangement against two new 'gateways' before you can work out if you're meeting your obligations.

    If your arrangement passes both gateways, the guideline will help you to:

    • work out if there's a risk your arrangement isn't compliant
    • understand the level of engagement you can expect from us
    • decide whether to seek professional advice or contact us
    • support your application for 'binding advice' if you want certainty.

    These changes ensure everyone pays the right amount of tax, and creates a level playing field for every professional in their respective industries.

    If you're contemplating entering new arrangements or have concerns about your existing profit allocation arrangements, contact us.

    Next step

    See also

  • Rate this article
  •  Average 2 out of 5