![]() The draft Ruling does not cover the attribution process in Division 86 or address the effect of Division 85 on deductions and the interaction of the two.Īttributions of PSI and deductions relating to PSI are not covered by this Ruling. The judicial decisions have been referenced throughout the Ruling. Paragraph 30 of the final Ruling has been amended to reflect this. The final Ruling maintains the principles set out in TRs 2001//8, while taking legislative changes and judicial decisions into account. This will help inform what is different in this Ruling compared with Taxation Rulings TR 2001/7 Income tax: the meaning of personal services income and TR 2001/8 Income tax: what is a personal services business. It is recommended that these decisions be listed in this section and some commentary included on how the respective decision clarified the law, particularly where the court decisions have resulted in the ATO modifying its views. clarifies the ATO view to take account of several judicial decisions which have further clarified the law. ![]() Paragraph 23 of the draft Ruling states '. A single case study is unlikely to assist numerous clients as the application of the PSI rules is dependent on specific facts and circumstances. The final Ruling contains numerous examples, using a variety of facts and circumstances to demonstrate the application of the personal services income (PSI) rules. The numerous and succinct examples are very useful and it would further assist if the ATO developed more detailed case studies that follow the examples to their conclusion. Example 41 in the final Ruling is provided to indicate when we may consider the application of Part IVA of the ITAA 1936. ![]() The application of Part IVA of the ITAA 1936 requires consideration of all the facts and circumstances of the case. There are clear references to the examples throughout the Ruling.Įxample 40 of the draft Ruling needs to be black and white and not ambiguous that is, when will Part IVA of the Income Tax Assessment Act 1936 (ITAA 1936) apply? No issue with technical content but would like to see the examples in the main body as it makes it easier for the reader to work through the Ruling.įrom a readability perspective, the Ruling flows better with numerous examples in one place, as it takes bulk out of the substantive commentary. All legislative references in this Compendium are to the Income Tax Assessment Act 1997, unless otherwise indicated.
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