The AAT has upheld a superannuation excess contributions tax assessment after finding that there were no “special circumstances” under s 292-465 of the ITAA 1997 to enable the Commissioner to disregard the excess non-concessional contributions.
- The taxpayer had made a personal superannuation contribution of $400,000 in the 2008-09 year.
- In doing so, she triggered her $450,000 non-concessional contributions cap for 3 years under the bring-forward rule.
- In July 2009, the taxpayer withdrew $200,590 from her super account and deposited it in her personal bank account.
- The taxpayer later established a self-managed superannuation fund (SMSF) and contributed id=”mce_marker”55,000 and $50,000 to her SMSF in the 2009-10 year. Of the $205,000 in contributions, the taxpayer deducted $23,905 so that id=”mce_marker”81,095 was a non-concessional contribution, which breached her remaining non-concessional cap by id=”mce_marker”31,095.
- Accordingly, the Commissioner issued her with an ECT assessment of $60,959 (ie 46.5% of id=”mce_marker”31,095).
The AAT upheld the Commissioner’s decision not to exercise his discretion under s 292-465 to disregard the excess non-concessional contributions after ruling that there were no “special circumstances”. In so finding, the AAT rejected the taxpayer’s arguments that special circumstances existed on the grounds of (i) the same money; (ii) incorrect advice; and (iii) personal circumstances.
(AAT Case [2014] AATA 339, Re Thompson and FCT, AAT, Ref No: 2013/1154, Deutsch DP, 29 May 2014.)
[LTN 103, 30/5/14]