(Too?) Basic trust question

S87.15(1) may be relevant however a person who is a contracted agent for a specific lender may be affected as mike indicates

 

And the Commissioner can allow what seems PSI to not be. I had a client with 100% of a single contract income. Failed all tests but the nature of the contract allowed freedom to provide technical services to a law enforcement agency on a engagement that was individual tasks only the specific person could produce. The alleged criminals were considered unrelated clients. Private ruling.

 

@Colin Rice - I have PM'd you our internal checklist that might help.

 

Interpretation of the issues are easily made wrong by a self assessing taxpayer... Hey I meet the results test. They tell me to do something and I do it (well actually. Good result). Pass.

 

Mike, i meet each of the following:

Section 87-40 of the ITAA 1997 modifies the operation of Part 2-42 for certain agents. Section 87-40 will apply to you if:

(a) you are an agent of the principal but not an employee

(b) you receive income from your principal for services provided to customers on the principal's behalf

(c) at least 75 per cent of that income is performance-based commissions or fees

(d) you actively seek other customers to whom you could provide services on the principal’s behalf,

How do i dodge this bullet? I was told if i holds PI insurance under the strusture im trading in, i might not be considered PSI/PSB?

 

So you are receiving mainly commissions not really contracting income as those rules apply to commission agents. All good also very important the rules re using the principals premises which arent up there.

But you have posted the rules regarding the 80/20 rule for agents. What about the other tests which also need to be met ? Unrelated clients, business premises or employment tests. In my own post i nake it clear after this 80/20 test you need to consider the other tests next.

Sounds as though you know some.of the rules.so your accountant will be able to see whether you comply with the rest. PSI is a complex area actually.