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Budget prompts ATO SMSF warning
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| Michael D'Ascenzo
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The super contributions cap changes announced in the Federal Budget have prompted the Australian Taxation Office (ATO) to issue a warning to self-managed superannuation funds trustees about the non-commercial use of negotiable instruments to gain income tax and superannuation credits.
The Tax Commissioner, Michael D'Ascenzo, referred to the use of promissory notes, cheques or other negotiable instruments between trustees and members with no exchange of money or assets ever taking place.
He said the ATO was concerned trustees might be lured into such arrangements without understanding the potential super and income tax implications.
"We are concerned with the non-commercial use of promissory notes to avoid the need to liquidate assets in order to change the timing of transactions or to obtain tax advantages that are not available in the circumstances," D'Ascenzo said.
He said, in particular, the ATO was concerned that taxpayers might be led into the non-commercial transactions hoping to take advantage of the existing superannuation concessional contributions caps in view of the Government's Budget announcements.
AUTHOR
Mike Taylor
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