The ATO has released a Decision Impact Statement on the decision in AAT Case [2014] AATA 474, Re Dowling and FCT. In that case, which was a rehearing of the matter as ordered by the Federal Court (see FCT v Dowling [2014] FCA 252, a test case funded by the ATO), the taxpayer was unsuccessful in seeking the Commissioner’s discretion under s 292-465 of the ITAA 1997 to disregard or re-allocate to another financial year all or part of her excess non-concessional contributions to super in the 2010-11 financial year.
The ATO said the approach taken by the AAT on remittal of the matter was consistent with the principles stated by the Federal Court, both in the case and in Liwszyc v FCT [2014] FCA 112, as to the correct approach to applying the discretion to disregard or allocate contributions to another financial year in accordance with s 292-465 of the ITAA 1997. The ATO added the principles stated by the Federal Court and the AAT’s application of them on remittal of the matter do not change its approach to excess contributions cases. However, it noted it will consider whether amendments to Practice Statement PS LA 2008/1 are necessary.
[LTN 173, 8/9/14]