The ATO has developed further guidance to deal with the tax treatment of personal services income and the allocation of professional firm profits.

Despite the guidance, the area remains full of traps for the unwary, as taxpayers and advisers have to work through multiple layers of law, public rulings and ATO guidelines.

In this webinar, Fletch and Declan will work through a series of case studies to identify:

• how the personal services income provisions operate
• what constitutes a personal services business
• when the ATO will consider Part IVA – even if the entity is a PSB
• when the ATO’s guidelines on the allocation of professional firm profits apply
• how the ATO identifies audit targets through risk zones
• what factors taxpayers and advisers should consider in managing any risk – whether it is time to change to fall within the green zone or whether the current arrangements are acceptable.