PCG 2021/D2 on allocation of professional firm profits (ATO stance on ‘income splitting’ etc.) – LCA submission as part of ‘consultation’

Tax Month - April 2021

On Monday 1.3.2021, the ATO released a DRAFT Practical Compliance Guideline PCG 2021/D2: Allocation of professional firm profits – ATO compliance approach (see related TT article about this). On 15 April 2021, the Law Council of Australia made its submission to this proposed PCG – criticising both its foundations and its execution. See below for…

Lowering our 30% corporate tax rate for large taxpayers, down to the 25% rate for SMEs supported by OECD and tax advisers

Tax Month - April 2021

The OECD recently recommended that our uncompetitive 30% corporate rate be lowered to the 25% rate applicable to SMEs, which has been echoed by taxpayers and advisers complaining that this ‘two-tiered’ system distorts how businesses grow and structure their operations. See below for further details. [Tax Month – April 2021]