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Edited version of private advice
Authorisation Number: 1052017587530
Date of advice: 2 September 2022
Ruling
Subject: Deductibility of service fees
Question
Are the services fees that you incurred in relation to your assessable income deductible under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997)?
Answer
Yes.
The services fees that you are charged will be a deduction under section 8-1 of the ITAA 1997 as the expense is incurred in gaining or producing your assessable income.
This ruling applies for the following periods:
Year ending 30 June 2023
Year ending 30 June 2024
The scheme commences on:
1 July 2022
Relevant facts and circumstances
You run a medical practice business.
The service charged is consistent with the ATO guide Your service entity arrangements.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 8-1