Professional Services Structures: Avoiding the ATO’s Pitfalls

Structuring a professional services firm? Don’t get caught in the ATO’s cross-hairs. Join tax expert & trainer Meng Lee as he covers the following through a case study: PCG 2021/4 – Allocation of professional firm profits TR 2006/2 – Service entity arrangements Special rules for medical practice companies PCG 2024/D2 – Personal services businesses & Part IVA Watch now and stay ahead of ATO scrutiny. 00:00 Introduction and Agenda 05:36 Background: Ray's Family and KYC Radiology Practice 14:25 Question 1: Do KYC fees count as personal services income for shareholders? 16:19 Factors for Determining PSI 20:11 Question 2: Service Fees & Service Entity Arrangements 27:11 Applicability to Medical Specialists & Part IVA Considerations 34:01 Question 3: Under PCG 2021/4, what risk zone applies to Ray’s FY2025 arrangements? 38:10 Identifying High-Risk Features 40:46 Risk Assessment Factors, Scoring, and Calculation 44:17 Calculation of risk assessment score 45:56 Case Study: Ray's Risk Zone Assessment for FY2025 50:06 Q&A and Conclusion For unlimited access to engaging tax training for accountants, head to www.taxnuggetsacademy.com.au.