If you own or operate a professional firm, read our updated guidelines to see if the method you share profit or income is in accordance with your tax requirements.
Accounting, law, medical, engineering, architectural, management consulting, and financial services firms are examples of professional firms.
You’ll need to examine your profit allocation arrangement against two new ‘gateways’ under the new guideline, which takes effect on 1 July 2022, before you can determine if you’re satisfying your commitments.
If your arrangement clears both checkpoints, the guideline will assist you to:
Determine whether there is a danger that your arrangement is not compliant; understand the amount of engagement you may expect from us;
support your application for ‘binding advice’ if you want certainty.
These adjustments ensure that everyone pays the correct amount of tax and that every professional in their respective businesses has a level playing field.
Contact us if you are considering new arrangements or have questions about your current profit allocation arrangements.
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