PCG 2021/D2 – Allocation of professional firm profits – ‘exposure draft’ finally released – ATO says same three factors still apply

On Monday 1.3.2021, the ATO released a DRAFT Practical Compliance Guideline PCG 2021/D2: Allocation of professional firm profits – ATO compliance approach. The Guideline explains how the ATO intends to apply compliance resources when considering the allocation of professional firm profit or income in the assessable income of the individual professional practitioner (IPP). The Law Council of Australia has since made a submission criticising this Draft PCG (see related TT article).

See below for further details.

[Tax Month – March 2021]