Did you know that any money you put into your superannuation fund that exceeds your annual contributions cap could attract a penalty tax rate of 93 percent?
The ATO has cracked down on excess super contributions, and is targeting over 30,000 taxpayers for excess contributions during the 2008 and 2009 years.
One way - and often the only way - of fixing an excess contributions problem is to ask the Commissioner of Taxation to exercise his discretion to reallocate your super contributions to a different year. According to a recent article in the AFR, Taxman agrees super penalties draconian (24 February 2011), the Commissioner exercises this discretion in less than two percent of cases.
If you need advice on appealing an excess superannuation contribution tax ruling, we invite you to contact us. Very few have been successful, but we have. In one successful application, we saved a client nearly $300,000 in tax.
Our experience gives us the best chances of success in applying for a reallocation from the Commissioner. For more information, please contact HopgoodGanim's Taxation and Revenue team.
