Yina Tang, CTA

Yina Tang, CTA

Pitcher Partners

All Sessions by Yina Tang, CTA

2:00 pm - 3:00 pm

Session 15.1: How much should I pay myself for what I do?

SME Stream

Can, and should, the Commissioner answer this question for you?

Nearly 80 years ago, the High Court observed that it was not the "function of income tax Acts or of those who administer them to dictate to taxpayers in what business they shall engage or how to run their business profitably or economically".

This session will explore whether this idea remains relevant today, with a particular focus on the Commissioner's latest "nudge" approach to tax administration and compliance in the area of the extraction of profits from professional service firms and other businesses. The panellists will consider:

  • Many provisions of the tax laws - e.g., transfer pricing, PSI rules, CGT market value substitution, NALI & NALE rules, the GAAR - produce fiscal consequences at odds with what actually happens but do the tax laws really dictate how businesses should be run by their owners, and how much profits they should extract?
  • Can, and does, the Commissioner dictate how taxpayers organise their affairs?
  • Is Draft PCG 2021/D2 the latest example of unacceptable dictation, or is the Commissioner doing precisely what he should doing?
  • Are the views in Draft PCG 2021/D2 badly expressed, or are they just bad?