|Event Date||Tue Mar 30 EDT (7 months ago)|
The ATO considers that personal services income (PSI) should be taxed in the hands of the individual deriving it. Notwithstanding, the use of an entity such as a company or trust to provide professional personal services is accepted by the ATO provided that there is a sound business or commercial reason for using the entity and there is no diversion of income from the personal services of the professional practitioner to family members and other related entities.
We also consider in detail the tax issues that may arise where a professional practice is sold and review the potential tax outcomes based on the manner by which the professional practice is disposed of.
Mr Tom Delany