Failure to lodge Notice of Intention to Claim Concessional Superannuation Contribution -

(Enthusiast)Enthusiast

3 Sept 2021

In the 2018 year I retained my existing accountant to lodge my personal income tax returns but transferred my self managed superannuation fund income tax return reporting to a specialist smsf accounting firm.

Both firms continued to complete work for me in the subsequent years to date.

Today I received a letter from ATO enclosing an Authority to release benefits due to excess non-concessional contributions, about $28,000 to ATO

Enquiries from accountants and ATO revealed that no Notice of Intent to Claim Concessional Superannuation Contribution was lodged with super fund in 2018.

No personal deduction for $25,000 super contribution was claimed in my 2018 return.

The superfund ITR or 2018 shows the $25,000 contribution as a concessional contribution

I have always claimed the $25,000 as a concessional contribution and I haven't personally provided a Notice of Intent, rather the accountant has always attended to this

My queries are -

1. Should the superfund accountant have sent the Notice of Intent to the personal accountant?

2. Should the personal accountant, who has done my tax for over 15 years, have been more pro-active and requested a Notice from the superfund accountant?

3. I was going through a stressful time in 2018 and can only surmise this was the reason I didn't realise the $25,000 wasn't included as a deduction in my personal ITR

4. Am I able to lodge an objection/appeal on this point? This is the first notice i have received of the non-lodgement of the Notice

5. If the monies pursuant to the ATO Authority are paid to ATO, will they be totally consumed by ATO or will the balance of monies after tax has been deducted, be paid to me?

6. Is it possible to lodge an Amended Notice now to claim the contribution as a deduction, thus paying no tax on it?

Thank you in anticipationn of any assistance

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Bruce4Tax

(Taxicorn)Taxicorn

3 Sept 2021

1. Should the superfund accountant have sent the Notice of Intent to the personal accountant?

No - notice of intent is only from you to SMSF.

SMSF then issues a confirmation letter that authorises the deduction on your personal tax return - not the notice of intent.

SMSF accountant should have included it in your sign up documents - assuming SMSF was signed up before 2018 tax return was lodged.

2. Should the personal accountant, who has done my tax for over 15 years, have been more pro-active and requested a Notice from the superfund accountant?

If it was a regular claim, then should have asked you if you had made any CC that you wanted to claim a deduction for.

3. I was going through a stressful time in 2018 and can only surmise this was the reason I didn't realise the $25,000 wasn't included as a deduction in my personal ITR

Enquiries from accountants and ATO revealed that no Notice of Intent to Claim Concessional Superannuation Contribution was lodged with super fund in 2018.

Claiming the deduction is not the problem, it is failing to notify the SMSF that the contributions were CC.

Without that notice, the SMSF should never have shown your personal contribns as CC.

Auditor should have detected this.

4. Am I able to lodge an objection/appeal on this point? This is the first notice i have received of the non-lodgement of the Notice

Too late for the notice of intent - has to be lodged to fund by the ealier of date of lodgement of personal tax return, or 30/06/2019.

But, you can amend the 2018 SMSF tax return to change personal contribns from CC to NCC.

5. If the monies pursuant to the ATO Authority are paid to ATO, will they be totally consumed by ATO or will the balance of monies after tax has been deducted, be paid to me?

No does not work that way. + Amending 2018 SSMF tax return should reduce XS CC to $ 3000.

6. Is it possible to lodge an Amended Notice now to claim the contribution as a deduction, thus paying no tax on it?

No - way too late for that. See above. In any case claiming the deduction does not make the XZ CC issue go away.

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