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20 Feb 14 More on Excess Concessional Contributions - the ATO responds

The ATO responds to Member 11's comments in last week's TAXVINE - see 2014 TAXVINE No 2 (14 February 2014) - about the difficulties faced in releasing moneys from a super fund to pay an excess contributions liability:

"Thank you, Member 11, for your comments and suggestions.

Based on your feedback, it appears that on this occasion our system has incorrectly selected first a fund which reported nil contributions. If you would like to provide further details we can investigate why this error occurred. With regard to selecting a reason code on the form, given the error, you can just leave this field blank. We apologise for any confusion this may have caused.

Please note that for excess concessional contributions made from 1 July 2013, these will be automatically included in a person’s assessable income and taxed at their marginal rate. Accordingly we are not making changes to older forms such as the one you’ve received and made suggestions to improve.

In regard to the ATO offsetting other tax or commonwealth debts, as a general principle we will offset credits or payments belonging to a taxpayer against any tax debt that they owe."