21 Nov 12 Decision Impact Statement - Longcake
The case concerned the question whether it was appropriate to disregard or allocate to another year superannuation contributions made by a company to relieve the taxpayer from excess concessional contributions tax. The AAT decided that the Commissioner’s objection decision refusing to exercise the discretion in s 292-465 of the ITAA 1997 should be set aside and that the discretion should be exercised in favour of the taxpayer.
The ATO says that the Commissioner will continue to consider each application for the exercise of the discretion in s 292-465 of the ITAA 1997 on its merits. This will involve an examination of the evidence of the contributions made, the extent of control a taxpayer has over the amount and timing of any particular contribution and the extent to which an excess is foreseeable, as these are matters the Parliament has chosen to prescribe may be taken into account.