17 Dec 1010 More on financial planners and "incidental" tax adviceMEMBER 370 writes:
"Thanks for bringing up this topic Member 367 - see last week's TAXVINE, 2010 TAXVINE No 50 (10 December 2010).
I have a client whose spouse died. Her financial planner advised the best course of action was to take the death benefit and 'invest it' in her superannuation. Both people were in the same fund so this was a matter of simple form filling and no doubt, commission collection. Cost to the client - $70,000 for excess contributions tax which she received notice of two years after the event. Unfortunately, the same planner advised making very substantial contributions in the following year following sale of property and he admits that he 'forgot' about excess contributions. We wait in trepidation to find out what the excess contributions tax will be for that year.
Why does the government support these people?"