P14 - Payments to associated persons

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COMPLETE THIS ITEM IF YOU MADE ANY PAYMENTS TO ASSOCIATED PERSONS AS A BUSINESS EXPENSE

These are amounts including salary or wages, commissions, superannuation benefits or allowances paid or payable to your relatives or a partnership in which your relative is a partner.

You need to keep the following records:

·Full name of relative or related partnership
·Age, if under 18 years old
·Relationship
·Nature of duties performed
·Hours worked
·Total remuneration
·Salary or wages claimed as deductions, and
·Other amounts paid - for example bonuses, commissions, gratuities

Excessive or unreasonable payments to your relatives or a partnership in which your relative is a partner may not be deductible. The PSI rules  (see item P1) also limit deductions for payments to associates.

 

COMPLETING THIS ITEM

Tax Assistant will automatically enter the amount to H item P14 if "Payments to associated entities" field from the "Business worksheet" has been completed. If not then:

STEP 1 Add up payments made to relatives and related partnerships from each business.

STEP 2 Write this amount at H item P14 on the schedule.