Tax Talks

In this final episode of our three-part mini-series about charities, we discuss Charitable Sub-Fund Arrangements with Darren Fittler of Gilbert + Tobin in Sydney, Melbourne and Perth.

PAF v PuAF - what is the difference between the two?

As accountants, we work with individuals, companies, trusts partnerships and any combination of those. That is what we are familiar with. 

But if a client came to you to set up a charity, would you know how to structure this? 

Identity verification of clients is strongly recommended by the TPB, but not yet mandatory.

Employee Share Option Plans - or ESOPs - give you an option to receive a share. That option might vest in the future, or it might not. Hence, taxation occurs only at the vesting point. Or in other words: The taxation point is at the point of vesting.

Employee Share Plans (ESP) give you shares without any strings attached. They are taxed upfront.

PSI in TR 2022/3 - steps 7 to 9 is about the employees test, business premises test as well as ATO PSI Determinations and of course the special agent rules.

PSI in TR 2022/3 - Steps 5 and 6: Nine steps to work out the taxation of PSI - here we cover the 80% hurdle and the unrelated clients test.

When you try to work out a PSI issue, it can get a bit confusing. So, it helps to put all this into a proper process.

Jamie Johns grew his firm to an annual turnover of $5m heading towards $10m. As a mentor at Wize Mentoring he has a unique view into what helps us grow.