08 Jul 11 On excess concessional contributions
MEMBER 117 writes:
"I am sick of the ATO's heavy handed tactics and close minded attitude.
I have a client that received excess contributions notices in respect of 2008 and 2009 financial years. On reviewing the member statements issued by the superfund for each of the years, the ATO had higher figures on each year. The member statements issued to the taxpayer by the fund had amounts being under the caps. As such, we objected against the assessments.
This morning I received a notice of objection decision, noting that I objected on 11/4/11 and received a response today 7/7/11 (date 1/7/11) disallowing the objection in full. 5 pages follow, essentially stating that, although nowhere in Subdiv 292B ITAA 1997 is there referred to the notion of "reported concessional contributions", nevertheless the ATO will add the word "reported" in for its interpretation of the legislation. Surely the correct documentation is the member statement that is provided to the member as this is the document that is audited by the auditor of the fund rather than the MCS form provided to the ATO.
The ATO response: You are free to seek a review at the AAT. Great solution, head to the AAT, building up thousands of dollars of costs to fix up the ATO's bungle. The client obviously is resigned to merely pay the $3k tax bill.
Thanks again for letting us members vent."