The Australian Accounting Standards Board (AASB) has issued agenda decisions concerning the following agenda items at its meeting held on 15-16 February 2012: Scope of AASB 112 Income Taxes – The AASB considered the issue of whether the proposed Minerals Resource Rent Tax (MRRT), which has passed the House of Reps, would be an income…
The Productivity Commission on Wed 29.2.2012, released an Issues Paper to facilitate public consultation into its inquiry into default superannuation funds in modern awards. The Government had announced the inquiry in January 2012 and had released the terms of reference. The purpose of the inquiry is to design transparent and objective criteria for the selection…
An ATO Assistant Commissioner, Stuart Forsyth, recently provided an update on SMSF compliance and audit issues. Speaking at the SPAA 2012 SMSF National Conference on 17 February 2012, Mr Forsyth highlighted what the ATO considered to be “systemic” issues: auditor independence – During 2011, Mr Forsyth said a number of cases were identified where the…
The AAT has affirmed that a business was liable to the super guarantee charge (SGC) as the work provided by a tandem master parachutist it paid was in the capacity of an employee under s 12 of the SGAA. The taxpayer operated a business of providing tandem parachuting services. The business paid, among others, tandem…
The Federal Court has found a corporate trustee of an SMSF had breached an enforceable undertaking under the SIS Act and ordered it to pay amounts it found owing to a fund member. The matter concerned a corporate trustee of an SMSF and an undertaking it took with the Commissioner under s 262A of the…
The AAT has affirmed that a taxpayer was liable for excess contributions tax in relation to the 2010 income year for contributions made exceeding the concessional contributions cap. For the 2010 income year, contributions totalling $52,659.98 was made into the taxpayer’s super fund by his employer, as a part of a salary sacrifice arrangement. For…
The AAT has denied a taxpayer’s request for the Commissioner to exercise his discretion to reallocate super contributions to another year under s 292-465(3) of the ITAA 1997 as it was not satisfied there were “special circumstances” to enliven the discretion. The taxpayer had exceeded the super contributions cap for the 2008 income year and…
The AAT has held that a non-compliance notice should be issued to a self-managed superannuation fund (SMSF) for regulatory breaches in respect of “book entry” loans made via a related party unit trust. The taxpayer is the corporate trustee of an SMSF and also acts as the trustee of a discretionary trading trust operating a…
The Superannuation Legislation Amendment (Trustee Obligations and Prudential Standards) Bill 2012 was introduced in the House of Reps on Thursday 16.2.2012. It contains the 2nd tranche of legislation for the Government’s Stronger Super (MySuper and governance) reforms. While the Bill is largely unchanged from the draft legislation released on 12 December 2011, it has been…
The Government on Tue 14.2.2012, released Exposure Draft – Superannuation Legislation Amendment (Stronger Super and Other Measures) Bill 2012 proposing to permit the Tax Office to disclose an individual’s superannuation details. The Draft Bill will amend s 355-65 in Sch 1 to the TAA to permit the Tax Office to disclose details of an individual’s…