 |
 |
 |
|
 |
Home > NEWS > Recent > Excess contributions tax and remission of penalties in connection with a release authority
Excess contributions tax and remission of penalties in connection with a release authority
16 June 2011
The ATO has released a practice statement outlining the situations in which the Commissioner will exercise his discretion to remit administrative penalties relating to excess contributions tax in the following situations:
Rather than paying this from their personal funds the taxpayer can seek to have the amount paid from their superannuation fund.
In these situations the Commissioner would generally give the taxpayer an assessment for the excess contributions tax and a release authority authorising release of funds from their superannuation fund to meet the liability.
The taxpayer and the fund have certain obligations with respect to making the withdrawal and satisfying the debt. Failure to satisfy these obligations may lead to administrative penalties being imposed on the taxpayer or the trustee of the fund.
Follow Bates Cosgrave News on Twitter @batescosgraveCA
16 June 2011
The ATO has released a practice statement outlining the situations in which the Commissioner will exercise his discretion to remit administrative penalties relating to excess contributions tax in the following situations:
- Where an individual does not provide a release authority to a superannuation fund;
- Where an individual gives a release authority and the total amount released exceeds the amount required to be released; or
- Where a superannuation fund does not release the required amount within the specified time.
Rather than paying this from their personal funds the taxpayer can seek to have the amount paid from their superannuation fund.
In these situations the Commissioner would generally give the taxpayer an assessment for the excess contributions tax and a release authority authorising release of funds from their superannuation fund to meet the liability.
The taxpayer and the fund have certain obligations with respect to making the withdrawal and satisfying the debt. Failure to satisfy these obligations may lead to administrative penalties being imposed on the taxpayer or the trustee of the fund.
Follow Bates Cosgrave News on Twitter @batescosgraveCA
Disclaimer
The material and contents provided on this website and in our print, email or downloadable publications are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained. Liability limited by a scheme approved under Professional Standard Legislation.
The material and contents provided on this website and in our print, email or downloadable publications are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained. Liability limited by a scheme approved under Professional Standard Legislation.
