ARTICLE · 06 AUGUST 2018

Allocation of profits within professional firms: Interim guidelines released

Colin Biggers & Paisley

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Arrangements exhibiting high-risk factors are addressed in these ATO Interim guidelines, but clarity is still needed.

AustraliaTax

In brief - Arrangements exhibiting high-risk factors addressed but clarity still needed

The Australian Taxation Office (ATO) has released its Assessing the risk: allocation of profits within professional firms interim guidelines for the year ended 30 June 2018. Practitioners in professional firms such as accounting, architecture, engineering, law, management consulting and medical practices will be affected.

In 2014, the ATO released guidelines for the year ended 30 June 2015 and later years, subject to review in 2017 (former guidelines). By 2017 the ATO had concerns that the former guidelines were being misapplied and decided to suspend their application from 14 December 2017.

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