Service trust ruling to be revised?

The Australian Taxation Office is expected to audit fewer small businesses following consultation with the business community on service trusts, according to today's Australian Financial Review.

Tax experts and businesses expressed concerns that many firms would be inadvertently caught in the ATO's planned audit of "high-risk" cases.

Acknowledging these concerns, outgoing Tax Commissioner Michael Carmody told a Senate Estimates Committee last week that the Department would change audit guidelines to narrow the audits of high-risk cases.

At the hearing, Mr Carmody also indicated that the ATO would issue more appropriate 'safe harbour' guildelines for the acceptable mark-ups on profesionals' services related to trusts.