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How are Retained Profits earned by a Professional Services Company treated in TaxPlan for the PFP Advice Report

Understanding Professional Firm profits and ATO risk factors.

Updated over 8 months ago

When evaluating Professional Firm profits and the associated risk factors outlined by the ATO, the focus is solely on actual entitlements received by the professional and any associates. This includes:

  • Salaries

  • Share of profits

  • Super fringe benefits

  • Dividends

It's important to note that any dividends or profits retained in a company are not considered in this process.

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