Many professional practices are structured in a manner that allows the distribution of the professional practice's income to non-practitioners.
The Commissioner has recently amended the ATO Guidelines on allocation of profits within professional firms for those practices wanting to avoid the risk of the application of Part IVA.
This paper looks at the scope of the three safe harbours identified in the Guidelines and their legal standing.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
