Personal Services Income: where to from here?

Article


Delany, Tom. 2012. "Personal Services Income: where to from here?" Revenue Law Journal. 21 (1), pp. 1-24.
Article Title

Personal Services Income: where to from here?

ERA Journal ID35560
Article CategoryArticle
Authors
AuthorDelany, Tom
Journal TitleRevenue Law Journal
Journal Citation21 (1), pp. 1-24
Number of Pages24
Year2012
Place of PublicationGold Coast, Australia
ISSN1034-7747
Web Address (URL)http://epublications.bond.edu.au/rlj/vol21/iss1/7/
Abstract

In Australia, the regime for the taxation of Personal Services Income (PSI) has suffered from being complex, unclear and uncertain, leading to poor compliance with the rules. Personal services income is defined as a reward for, or the result of, one’s personal efforts. Prior to the introduction of the regime, the tax system was plagued with a major inequity: it was possible for individuals to reduce their tax liability by alienating their PSI to an associated company (or other legal entity) and by claiming inappropriate 'business' deductions. This article reviews the current interpretation of the PSI rules, evaluates the Board of Taxation and the Henry Review findings and suggests an approach that reduces the potential application of Part IVA.

Keywordspersonal services income, Henry Review, Part IVA
ANZSRC Field of Research 2020480106. Taxation law
Byline AffiliationsSchool of Law
Institution of OriginUniversity of Southern Queensland
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https://research.usq.edu.au/item/q1546/personal-services-income-where-to-from-here

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