Do you have an entity such as a company or trust that provides personal services to only one customer?
Bad news - you may have to pay a little more tax. The attribution rules are what you need to be aware of and were introduced to stop people getting a tax advantage by trading through another entity, rather than in their own names.
This rule was introduced when the top tax rate was 39 per cent and the trust and company tax rates were 33 per cent and although the company tax rate is now 28 per cent there's still a potential advantage to trading as a company because individual rates are higher at 33 per cent.
That 5 cents per dollar is what you could end up paying if the rules apply to you, plus interest and naughty penalties. So what do the rules say? Income is attributed to a person if all the following criteria is met.
* 80 per cent of the entity's income is from services personally performed by an associated person or relative.