A person is a Director of company ABC and gets directors sitting fees. Can the director issue an invoice from company XYZ Pty Ltd to ABC Pty Ltd for his directors sitting fees in ABC Pty Ltd? If yes, where do i get the ATO ruling. Couldn't find the exact link.
Hi @Pk,
In most cases, where an individual is appointed as a director of ABC Pty Ltd, the director's sitting fees belong to that individual and cannot simply be invoiced from XYZ Pty Ltd instead.
Merely issuing an invoice through XYZ Pty Ltd does not change the tax treatment of the payment.
The relevant Taxation Ruling is IT 2534, which deals with the taxation treatment of directors' fees.
Whether XYZ Pty Ltd can invoice ABC Pty Ltd depends on the specific legal and contractual arrangement. Specialist tax advice should be obtained before treating the fees as company income.
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