The Australian Taxation Office (ATO) has issued a notice on its compliance approach to the allocation of professional firm profits as outlined by Practical Compliance Guideline (PCG) 2021/4, which applies from 1 July 2022.
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Professional firm profit allocation arrangements
Professional firms (such as accounting, law, medical, engineering, architecture, management consulting, and financial service practices) should review their profit allocation arrangements using PCG 2021/4 Allocation…