Re Sinclair v FCT – Decision Impact Statement on case which included benefits in breach of SIS in taxpayer’s assessable income [77]

The ATO on Fri 23.11.2012, issued Decision Impact Statements on the following: AAT Case [2012] AATA 634, Re Sinclair and FCT – In that case, the AAT upheld the Commissioner’s decision to include a superannuation benefit in a taxpayer’s assessable income under s 304-10 of the ITAA 1997 on the grounds that it was withdrawn in…

Decision Impact Statement on Longcake v FCT – one of the few cases where the excess contributions tax assessment was set aside [76]

The ATO Tue 20.11.2012, released a Decision Impact Statement on AAT Case [2012] AATA 576, Re Longcake and FCT. In that case, the AAT decided that an excess contributions tax assessment should be set aside as special circumstances existed, ordering that superannuation contributions paid by the taxpayer’s employer in early July 2009 be reallocated to the previous…

TA 2012/7 – warning about SMSF arrangements to acquire property that could breach superannuation law involving limited recourse finance and related trusts [75]

The ATO on Tue 20.11.2012, issued Taxpayer Alert TA 2012/7 warning taxpayers of certain arrangements entered into by SMSFs, to acquire property, that do not comply with superannuation law – particularly those involving limited recourse borrowing arrangements or the use of a related trust. The ATO says it is concerned that some of these arrangements,…

*Re The Trustee for MH Ghali Superannuation Fund and FCT – ATO accepts the win on ‘special income’ but disputes that the meaning of ‘fixed entitlement’ comes from Schedule 2F [74]

The ATO Thur 15.11.2012, released a Decision Impact Statement about the following case: AAT Case [2012] AATA 527, Re The Trustee for MH Ghali Superannuation Fund and FCT – In that case, the AAT confirmed amended assessments to include “special income” issued to a taxpayer for the 2005 and 2006 income years under the then…

*Re Davenport and FCT – Fund received contribution on 27 June but kept it in suspense until 1 July remittance advice – no special circumstances warranting reallocation to earlier period [73]

The AAT has agreed with the Commissioner’s decision not to exercise his discretion to reallocate excess super contributions to the previous financial year as it considered there were no special circumstances. On 27 June 2008, the taxpayer’s super fund received 4 Electronic Funds Transfer (EFT) payments from the taxpayer’s employer. As the super fund was…

Re Peach and FCT – Early access to SMSF money assessable – trustee could not be reasonably satisfied that member ‘retired’ from the work force [72]

The AAT has upheld the Commissioner’s decision to count money withdrawn from a self-managed superannuation fund (SMSF) in breach of the SIS Act as part of a taxpayer’s assessable income under s 304-10 of the ITAA 1997. In 2003, the taxpayer borrowed money from his SMSF to build a yoga studio at his home where…

Re Australian Medical Services Pty Ltd and FCT – SGC correctly calculated from beginning of the quarter to default assessment and no power to remit back to date of contributions [70]

The AAT has held that the nominal interest component of a super guarantee charge (SGC) imposed on the taxpayer was correctly calculated. In addition, the Tribunal also held there was no discretion for the Commissioner to remit the nominal interest component of the SGC. The taxpayer was an employer that was late in making super…

Re Dickinson and FCT – Excess super contributions tax: no special circumstances [69]

The AAT has agreed with the Commissioner that the circumstances surrounding a taxpayer’s excess super contributions did not constitute “special circumstances” under s 292-465 of the ITAA 1997. Accordingly, it held the Commissioner’s discretion should not be exercised to reallocate the excess contributions to another year. The taxpayer made excess contributions into a super fund…

Re Hamad and FCT – Excess contributions tax assessment set aside – special circumstances existed because he scrutinized payslips [68]

The AAT has found that special circumstances existed in a taxpayer’s situation to allow for the Commissioner’s discretion in s 292-465(1) of the ITAA 1997 to reallocate monies paid into a super fund on 28 and 28 July 2009 to be attributed to the 2008-09 financial year. The taxpayer exceeded the concessional contributions cap for the 2009-10 financial…