By taxconnect on
Wednesday, January 11, 2012
If you have incorrectly classified yourself as a personal services business (PSB) instead of reporting personal services income (PSI) be on notice that the Tax Office will be conducting audits to ensure tax payers have correctly classifed themselves. The Tax Office have advised tax agents that they intend to start audit activity in this area. An extract of the notice states:
"we will write to some taxpayers who have reported personal services income (PSI) and may have incorrectly self-assessed themselves as conducting a personal services business. If one of your clients is selected for this mailout, you will receive a letter in advance that will include:
- a copy of the client letter
- a list of your clients affected