The ATO has advised that in May 2013 it will be writing to some taxpayers asking them to review their income tax returns for the 2011-12 year. It says those taxpayers will be asked to review whether the business income they have reported in their tax returns may be in full or part, be classified as personal services income (PSI).
According to the ATO, tax agents will be provided with a letter in advance indicating all affected clients as well as a copy of the letter. It also encourages tax agents to review their clients’ tax returns and make voluntary disclosures where necessary.
[LTN 89, 13/5/13]