Daily Archives: May 25, 2018

Post Budget meeting of ATO’s ‘Professional Firms Working Group’ – income splitting guidance after crimping Small Business CGT relief exposes many ‘Everett’ assignments again

The ATO has established a ‘Professionals Firms’ Working Group’ to consult on what is acceptable, and unacceptable, allocation of profits within professional firms (put bluntly: how much income splitting is ok). This group has been meeting since the Commissioner suspended his guidance, on this subject, on 14 December 2017 [see related TT Article]. This group…

Allocation of profits within professional firms – a flurry of recent developments

There has been a lot of activity around the allocation of profits within professional firms, in the last 6 months (December 2017 to May 2018). The key events and (where applicable) related Tax Technical articles, are set out below. On 14 December 2017, the Commissioner of Taxation ‘suspended’ (not cancelled) his 2015 guidance on what…

Budget Measure – limiting CGT Concessions to partners of ‘small’ partnerships, resulting in many ‘Everett’ assignments of partnership interests being subject to prohibitive CGT again

In the 2018 Federal Budget, the Government announced a change to the Small Business CGT Concessions (in Div 152 of the ITAA97) that would adversely affect many partners who ‘alienate’ their partnership income assigning their interest in the professional partnership, to a related entity (and thus ‘split’ what would otherwise be, their income). Such assignments…