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44 Payments to associated persons

Last updated 11 February 2019

Show at M the amounts, including salaries, wages, commissions, superannuation contributions or allowances, paid to the trustee's relatives or partnerships in which the relative of the trustee is a partner.

Also include the amounts of salaries and wages paid to an associated person, relative, principal, agent, related entity or associate entity at item 43 Total salary and wage expenses.

Record keeping

Excessive payments to a relative or other related entity may not be deductible, see section 26-35 of the ITAA 1997. Keep a record of the following to establish the reasonableness of remuneration:

  • full name of relative or other related entity
  • relationship
  • age, if under 18 years old
  • nature of duties performed
  • hours worked
  • total remuneration
  • salaries or wages claimed as deductions
  • other amounts paid, for example retiring gratuities, bonuses and commissions.