*Div 293 super contributions tax (surcharge on those earning over $300k) – assessments for 2012/13 year to issue in January 2014 [75]

The Tax Office has released its SMSF News (Edition 27) indicating that it will start issuing the first assessments for the new Division 293 tax in January 2014 for individuals above the $300,000 high-income threshold for the 2012-13 financial year. The Tax Office said it will determine who is liable to pay the Div 293 tax by adding…

Accountants providing SMSF advice: SPAA outlines licensing options [74]

Accountants who are thinking about providing SMSF advice should choose the licensing option that best suits their business model, says the SMSF Professionals’ Association of Australia (SPAA). Liz Ward, Head of SPAA’s Education Services, said 1 in 4 accountants who are SPAA members (and not operating under an Australian financial services licence (AFSL)) have decided…

Re KFBC and FCT – Super excess non-concessional contributions tax assessment affirmed on amount withdrawn and re-deposited [71]

A taxpayer has been unsuccessful before the AAT in arguing for relief from the Commissioner’s imposition of excess non-concessional contributions tax. The taxpayer had contributed $430,000 into his super fund account in the 2007-08 financial year. However, in September 2008 and in response to the global financial crisis, the taxpayer withdrew half the money. In September 2009, the taxpayer…

*Kelly v FCT – the taxpayer’s family trust was not entitled to a deduction for $100k super contributions for husband and wife directors – not ‘employees’ [70]

In a related matter, the Full Federal Court upheld the decision at first instance in Kelly v FCT (No 2) [2012] FCA 689 that the taxpayer’s family trust was not entitled to a deduction under s 290-60 of the ITAA 1997 for super contributions of id=”mce_marker”00,000 made on behalf of the husband and wife trustee directors…

PS LA (GA) – Input tax credits will not be disallowed where the supplier wrongly treated the sale as taxable, but acquisition was creditable [66]

The ATO on Thur 1.8.2013, released Practice Statement Law Administration PS LA 2013/3 (GA) to explain the circumstances in which the Commissioner will use his powers of general administration to allow a recipient to retain an input tax credit that it has claimed where a transaction was incorrectly treated by a supplier as giving rise…