14 Nov 08
ATO’S Tax Practitioner Subcommittee (ATPF) meeting update
At last week's ATPF meeting - see 2008 TAXVINE No 44 (7 November 2008) - the Taxation Institute raised our Members' concerns about superannuation funds issuing incorrect payment summaries involving tax free payments under the simplified super rules to fund members over 60. In addition to the ATO information published as guidance for funds on what they should do under the simplified super rules, the ATO advised that it is also currently implementing a range of strategies for managing this problem. In particular they liaising with super funds that have been identified as issuing incorrect payment summaries, to ensure the errors are eliminated in moving forward. At this stage, the ATO has advised that if fund members are in this situation:
- they should contact the fund and ask them for an amending letter on the business/fund letterhead that shows the correct details and keep this with the original payment summary; and
- if the fund is unwilling or unable to provide an amending letter, they need to complete a general statutory declaration in relation to the the incorrect payment summary and keep this with the original payment summary.
It is also our understanding that the ATO will make adjustments to its income matching systems to ensure that taxpayers are not incorrectly assessed as a result of mistakes made by funds in these circumstances.