ATO still vigilant on illegal early release schemes
The Australian Taxation Office (ATO) has reinforced its intention to crack down on illegal early release superannuation schemes and has warned of the significant tax implications for those involved.
ATO assistant commissioner, superannuation, Stuart Forsyth has used an address to a recent Self Managed Superannuation Fund (SMSF) conference to point to a recent Administrative Appeal Tribunal (AAT) decision reinforcing the tax office approach of imposing higher taxes and additional penalties.
He said the AAT decision, handed down in August, involved a taxpayer who had used money from her SMSF to prop up her and her husband's real estate business.
"The amounts withdrawn were included as assessable income to her," Forsyth said.
He said the illegal early release schemes often targeted particular groups within the community and people needed to be aware that such schemes were illegal and attracted significant penalties for both promoters and participants.
Forsyth said that this year the ATO would be auditing about 40 promoters and 300 participants.
AUTHOR
Mike Taylor
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