21 Nov 14
On Div 293 tax assessments - the ATO responds
In 2014 TAXVINE No 42 (14 November 2014), Member 179 wrote about numerous difficulties that arose with a Div 293 assessment after the client paid the assessment from their personal funds and then received a further Div 293 assessment that included the amount payable (and paid) under the original assessment.
THE ATO NOW RESPONDS
"Dear Member 179, thanks for your feedback on Div 293 tax.
The experience you describe for your particular client raises a number of issues for us to consider as we look to review and improve the experience going forward in both the Div 293 and excess contributions situations. Some of the issues you describe arise from the order in which the ATO receives information for members with multiple funds and the timing of the issue of assessments. The fact that the law operates to ensure that a defined benefit liability must take precedence over an accumulation liability can complicate this process.
As a result of previous feedback we have redesigned our correspondence package which will be utilised from March 2015. Your comments have also provided us with additional focus areas.
In the future we do expect the Div 293 liability account to be viewable and payable online along with the ability to view correspondence. For the moment, the payment slip is located on the Statement of Account."