ATO appears to change stance on SMSF contributions
Heffron senior technical adviser Mark Wilkinson has pointed to a number of recent developments that signal a "gentle shift to one of more reasonableness" in regards to self-managed super fund (SMSF) contributions.
He said the Australian Taxation Office (ATO) had effectively reversed its position on the 'de minimis' rule which will enable the Commissioner to re-allocate excess contributions to avoid triggering the non-concessional cap.
Previously, the ATO had not considered minimal errors that had far-reaching impacts, although Wilkinson said it was now reviewing contributions assessments retrospectively.
"I'm also aware that with de minimis they are going back and looking at previous assessments that have been issued in some circumstances and reversing or refunding the tax that's been paid," he said.
The case of Bornstein, which was reviewed by the Administrative Appeals Tribunal (AAT), had also highlighted the ATO's more lenient position on contributions, according to Wilkinson.
Although the AAT exercised its discretion and issued a contributions assessment, the matter was overturned by the ATO which decided Bornstein's contributions could be re-allocated to a previous period, Wilkinson said.
Wilkinson said that while it appeared the ATO was changing its position, it was easy for SMSFs to get caught out.
He said he could not see why Bornstein's appeal was successful while the 11 previous cases had been rejected.
AUTHOR
Staff Writer
Recommended for you
The financial services technology firm has officially launched its digital advice and education solution for superannuation funds and other industry players.
The ETF provider has flagged a number of developments as it formally enters the superannuation space through a major acquisition.
While all MySuper products successfully passed the latest performance test, trustee-directed products encountered difficulties.
Iress has appointed Insignia Financial’s former general manager of master trust and insurance products as its newest CEO of superannuation, who will take over from Paul Giles.
