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Superannuation funds seek US tax exemption
The Australian superannuation industry has made a plea to the US Government for Australian funds to be exempted from proposed stronger regulations with respect to tax evasion.
In a submission to the US Treasury and the Internal Revenue Service, the Association of Superannuation Funds of Australia (ASFA) has argued that Australian superannuation funds pose a low risk to the US taxation regime.
The submission has asked that Australian superannuation funds be included among those foreign retirement plans exempt from the certain sections of the US legislation because they “pose a low risk of tax evasion”.
It has suggested that, in the alternative, Australian superannuation entities should be excluded from the definition of ‘foreign financial institution’.
“We submit that entities held 100 per cent by Australian superannuation entities pose a low risk of tax evasion,” the submission said.
It said that this was because of the nature of their investors, and that the entities should be exempt from withholding under the US legislation in the same way as their superannuation investors.
The submission said such an exemption would reflect aspects of the Australian taxation law that extends tax concessions to entities that are 100 per cent owned by Australian superannuation entities.
It said that Australian superannuation entities should be defined to include regulated superannuation funds, approved deposit funds and pooled superannuation trusts.
AUTHOR
Mike Taylor
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