The ATO has warned SMSF trustees to avoid the latest range of retirement planning schemes that are targeting SMSF members, particularly those approaching retirement.Stuart Jones, Thomson Reuters
As part of its Super Scheme Smart program, the ATO has released further information and case studies for Individuals and Intermediaries to highlight the warning signs and risks associated with these contrived arrangements.
ATO Deputy Commissioner James O'Halloran said such arrangements may be cleverly disguised to look legitimate but are often illegal and involve a lot of paper shuffling that can put SMSFs at risk. If a taxpayer becomes involved in any illegal arrangement, even by accident, Mr O'Halloran said they may incur severe penalties and jeopardise their retirement savings. Just because an arrangement is structured in a way which appears to satisfy certain tax and regulatory rules does not mean it is legal, he said.
The latest schemes of concern to the ATO include:
While these schemes are not necessarily specific to the 1 July super changes, the ATO is concerned that they may appear attractive to uninformed SMSF trustees in light of the recent reforms. The latest schemes are in addition to the arrangements previously flagged by the ATO in relation to dividend stripping, diverting personal services income to an SMSF and non-commercial LRBAs.
The ATO said it is also monitoring other arrangements that relate to the super caps and restrictions that apply from 1 July 2017, including the:
The ATO recommends anyone with concerns about such schemes (or who would like to make a voluntary disclosure) should seek professional advice or contact the ATO's Aggressive Tax Planning line — tel: 1800 060 062 or email: firstname.lastname@example.org. See further the ATO Super Scheme Smart webpage.
You can read earlier ClearLaw articles on a range of superannuation topics.
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