On 1 March 2021, the ATO released new draft guidance on the allocation of professional firm profits in the form of Draft Practical Compliance Guideline PCG 2021/D2: Allocation of professional firm profits - ATO compliance approach (draft PCG).
The draft PCG 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). When finalised, the PCG is proposed to apply from 1 July 2021.
Prior to outlining the steps The Tax Institute is taking to support you, a number of key issues are outlined below to provide some perspective and hopefully put your minds immediately at rest.