ATO warns breaches will not be quarantined
The Australian Taxation Office (ATO) has warned that people who engage in tax-minimisation schemes face the risk of being disqualified from being a self-managed superannuation fund (SMSF) trustees.
In a clear signal that the ATO is not treating tax breaches in one sector in isolation from responsibilities in another, ATO Assistant Commissioner, Kasey MacFarlane, has told SMSF trustees that engagement in aggressive tax planning will carry significant consequences.
"Trustees and advisers promoting arrangements that use SMSFs to inappropriately access tax concessions or to deliver present-day benefits should be on notice that they will be dealt with, with the full force of the law," MacFarlane said.
More importantly, the tax official made clear that breaches would not be treated in isolation.
"… the income tax and regulatory issues associated with these arrangements will not be treated in isolation," she said. "Trustees engaging in tax-minimisation schemes also face the strong likelihood of being disqualified from being an SMSF trustee."
MacFarlane emphasised that only a small minority of SMSFs were not complying with the rule sor were seeking to misuse their SMSFs, but said that firm action would be taken by the ATO together with other Government agencies.
"Aggressive tax planning often entails artificial and contrived arrangements that are designed to avoid tax or deliver a tax benefit. We will take very strong enforcement action in relation to these types of arrangements," she said.
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