The AAT has upheld an excess contributions tax assessment after ruling there were no “special circumstances” under s 292-465 of the ITAA 1997 to reallocate an excess contribution made via an electronic funds transfer (EFT).
In late June 2009, the taxpayer requested his employer to bring forward a superannuation contribution that would ordinarily be paid in July 2009. On 30 June 2009, his employer initiated an EFT of $8,286 to the taxpayer’s superannuation fund. However, the contribution was not received into the superannuation fund’s bank account until 1 July 2009. The Commissioner treated the $8,286 amount as a concessional contribution “made” in the 2010 year. This resulted in excess contributions of $4,954 for the 2010 year and an ECT assessment of $1,560.
The AAT held that the concessional contribution on 30 June 2009 was not “made” in the 2009 year pursuant to s 292-25(2)(a) of the ITAA 1997 as the amount was not “received” by the superannuation fund until 1 July 2009. The AAT rejected the taxpayer’s argument that the contribution was “made” as soon as his employer had done everything necessary to effect an EFT to his super fund. Instead, the AAT agreed with the Commissioner that contributions by EFT are “made” when they are actually “received” by the superannuation fund and credited to the fund’s account. In doing so, the AAT essentially followed its reasoning from AAT Case [2012] AATA 322, Re Rawson and FCT (see above).
The AAT also held there were no “special circumstances” under s 292-465 to justify a determination to reallocate the excess contribution to the 2009 year. The AAT considered there was nothing “unusual or different” about the taxpayer’s circumstances to take them out of the ordinary course, or produce a result that was “unreasonable, unfair, inappropriate or unjust”. The AAT said it was normal banking practice for an EFT not to be credited to the receiving bank until the next business day. Consequently, the AAT said it was not unusual, exceptional or uncommon that the relevant contribution was not received by the fund until 1 July 2009.
(AAT Case [2012] AATA 334, Re Paget and FCT, AAT, Ref No 2011/5409, Walsh SM, 5 June 2012.)
[LTN 112, 13/6]