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.