MasterNuggets with Meng: At Your Professional Service

Examine the traps & pitfalls when structuring a professional services business, including a dive into recent Practical Compliance Guidelines (PCGs) & tax rulings, along with a case study example.

In this session, we cover:

• Case Study on: KYC Radiology Practice & Ray’s Family

• Question 1: Do the fees received by KYC constitute personal services income (PSI) of the shareholders?

  • Factors to consider when determining PSI

  • TR 2022/3

• Question 2: Service Fees & Service Entity Arrangements

  • TR 2006/2 and applicability to medical specialists

  • Potential application of Part IVA

• Question 3: In accordance with PCG 2021/4, what is the risk zone for Ray’s arrangements in FY2025?

  • Individual professional practitioner (IPP) self-assessment

  • Gateways for risk assessment under the PCG: “Commercial rationale” & “No high-risk features”

  • Calculation of risk assessment score

Date recorded: 1 September 2025