Excessive Contributions Tax Law needs Review
03/02/2012 by Michael Dietrich
I read with interest that the Institute of Chartered Accountants (ICAA) has used its pre-budget submission to urge the government to reconsider the legislation of up to $10,000 in excess contributions. They have called for the implementation of a full refund of excess contributions regardless of the amount, timing or frequency.
The SMSF industry has seen that the ATO has had their hands tied by the legislation that the ICAA described as "excessive, unwarranted and inconsistent not only with the policy objective, but penalties for breaches in other areas of the tax law".
The government announcement last year of the $10,000 one-off opportunity to refund the excess contributions was at the time seen as an important positive step for a fairer system. Many within the SMSF industry, including myself, didn't think that it was an adequate solution.
I welcome and support the ICAA submission. Let's hope that this submission does not fall on deaf ears and a common sense solution is found.
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The SMSF industry has seen that the ATO has had their hands tied by the legislation that the ICAA described as "excessive, unwarranted and inconsistent not only with the policy objective, but penalties for breaches in other areas of the tax law".
The government announcement last year of the $10,000 one-off opportunity to refund the excess contributions was at the time seen as an important positive step for a fairer system. Many within the SMSF industry, including myself, didn't think that it was an adequate solution.
I welcome and support the ICAA submission. Let's hope that this submission does not fall on deaf ears and a common sense solution is found.
