The Tax Office today issued a taxpayer alert warning trustees and members to be cautious when moving assets other than cash into superannuation funds.
When assets other than cash are transferred to a superannuation fund trustees must make sure the fund accurately reports the market value of the assets and considers any other relevant superannuation regulatory issues.
Tax Commissioner Michael D’Ascenzo said the Tax Office is concerned about certain transactions designed to manipulate contribution limits to avoid paying the excess contributions tax.
“We are concerned about contributions of assets made to a fund where the market value of the asset is not properly accounted for in an attempt to avoid paying excess contributions tax,” Mr D’Ascenzo said.
“It is also of concern that people may try to avoid the excess contributions tax by paying expenses on behalf of their fund, or by making improvements to a fund asset without reimbursement for the work.
“We follow up on excess contributions to superannuation so people need to make sure they don’t exceed the cap or they will receive an excess contributions tax assessment.
“People also need to consider any income, capital gains and fringe benefits tax implications when transferring assets.”
Trustees of superannuation funds and auditors of self-managed superannuation funds concerned about issues raised in this taxpayer alert should obtain their own independent advice or seek guidance from the Tax Office.
Article by Christie Lewis
Christie is Practice Manager at Alan Lewis Accountants . Besides accounting, her passion is for all things small business (and blogging, of course). You can contact Christie directly at christie@lewistaxation.com.au.
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