ATO warns tax dodgers
The Australian Taxation Office has issued a taxpayer alert warning trustees and super fund members to be cautious when making contributions to superannuation funds.
Commissioner of Taxation Michael D’Ascenzo said when assets other than cash are transferred to a super fund, trustees must be certain the fund accurately reports the market value of the assets and considers any other relevant super regulatory issues.
According to D’Ascenzo, there are concerns about certain transactions designed to manipulate contribution limits to avoid paying excess contributions tax.
“It is also of concern that people may try to avoid the excess contributions tax by paying expenses on behalf of their fund, or by making improvements to a fund asset without reimbursement for the work,” D’Ascenzo said.
“We follow up on excess contributions to superannuation so people need to make sure they don’t exceed the cap or they will receive an excess contributions tax assessment.
“People also need to consider any income, capital gains and fringe benefits tax implications when transferring assets.”
Recommended for you
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.
New Zealand’s financial regulator is following the footsteps of its Tasman neighbours and proposing to conduct a review on improving the accessibility of financial advice and advice business models.
Lower fees and trustworthiness are the top factors enticing unadvised Australians to seek a financial adviser, according to Fidelity International, common across all generations.
AFCA has confirmed United Global Capital’s membership of the body will not be extended to accept further complaints, avoiding a repeat of the Dixon Advisory scenario.