Announcements
Are you a tax professional needing a bit more time to lodge? Check out how to apply online for a deferral, or ask the Community!

ATO Community

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

Enthusiast

Views 88

Replies 5

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

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

Taxicorn Registered Tax Practitioner

Replies 4

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.

 

 

5 REPLIES 5

Most helpful response

Taxicorn Registered Tax Practitioner

Replies 4

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.

 

 

Enthusiast

Replies 3

Hi Bruce,

 

Thank you so much for your prompt reply.

 

However there are a few areas that require clarification, I think -

 

1.  The SMSF did nclude the Notice of Intent to Claim in the sign-up documents, but as we didn't activate/forward them to our personal accountant previously, we presumed, based on previous practise, that we didn't have to do anything with them.

 

2.  It appears from the above, that the SMSF correctly recorded the contributions as concessional.

 

3.  Is it possible to amend the personal 2018 ITR to correctly include the personal contributions from non-concessional to concessional?

 

4.  What will be the outcome if the previous suggestion ie amend 2018 to concessional contributions, be? Will no tax be paid or what other percentage/amount, etc.

 

I must say, I've spent most of the day trying to understand these complex issues, which have arisen two-three years after the facts, also communicating with two different accountantcy firms who appear to be ducking and dodging the pertinent issues.

 

In these troubled covid times, this added stress is definitely magnified.

 

Thank you again Bruce

Taxicorn Registered Tax Practitioner

Replies 2

2.  It appears from the above, that the SMSF correctly recorded the contributions as concessional.

 

Not correctly  -  notice of intent not provided to SMSF.

 

3.  Is it possible to amend the personal 2018 ITR to correctly include the personal contributions from non-concessional to concessional?

 

Not  correctly  -  notice of intent not supplied to SMSF by due date.

 

No backdating  -  accountants have done gaol time for that.

 

4.  What will be the outcome if the previous suggestion ie amend 2018 to concessional contributions, be?

Will no tax be paid or what other percentage/amount, etc.

 

I said amend 2018 SMSF to change from conc to non-conc.  -  because of no notice of intent.

 

We are doing these docs for SMSFs all the time   +  checking for them when doing SMSF audits.

 

Enthusiast

Replies 1

Hi Bruce

 

Thanks again for your prompt reply, I want to provide further clarfication -

 

1.  The SMSF generated the Notice of Intention to Claim - so how then can it be argued that they didn't have it by the due date?

 

2.  I wasn't suggesting back-dating the document, only lodging an Amended Tax Return reflecting the Concessional Contribution as stated in the SMSF ITR

 

3.  Can you suggest another avenue which will mean I'm not paying $28,000-odd to ITO because a form wasn't lodged?

 

Thanks

 

Taxicorn Registered Tax Practitioner

Replies 0

 

1.  The SMSF generated the Notice of Intention to Claim - so how then can it be argued that they didn't have it by the due date?

 

I was relying on your statement:

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

 

If , in fact, this was a mis-statement, then things are completely different.

 

2.  I wasn't suggesting back-dating the document, only lodging an Amended Tax Return reflecting the Concessional Contribution as stated in the SMSF ITR

 

This depends on the facts of Q1  -  did the fund receive the notice of intent by the required date, or not?

 

If Yes, then ITR can be amended if within the amendment time limit  if outside that period, then you would need to object + apply for discretion for the objection to be lodged out of time.

 

If NO, then ITR cannot be amended  so SMSF TR should be amended.

 

 

3.  Can you suggest another avenue which will mean I'm not paying $28,000-odd to ITO because a form wasn't lodged?

 

ATO only takes the tax out and gives you back the rest.

 

If you cannot get these answers from your accountants, then you should seek advice from a SMSF specialist advisory firm.

 

 

 

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