This presentation has broad application to all professional firms covering Draft Practical Compliance Guideline PCG 2021/D2 (Draft PCG).

In this webinar we will outline the history in this area and the compliance approach that the ATO intends to apply when considering the allocation of profits by professional firms. The Draft PCG replaces the ATO’s Assessing the Risk: Allocation of profits within professional firms guidelines and the Everett Assignment web materials which were suspended on 14 December 2017. Whilst the draft PCG has some overlap with previous guidelines, there are also key differences that we will explain.

The PCG and case studies examine the inclusion of income in the assessable income of “individual professional practitioners” (IPPs) in various professional firms such as legal, accounting, architecture, and medical practices. The ATO intends IPPs self-assess to ensure compliance, so it is vital to self-educate and be proactive in terms of how to structure your firm and distribution of profits in advance of these new changes.

This interactive session will ensure participants are aware of these significant updates to alleviate potential practice risks.