ATO Interpretative Decision
ATO ID 2007/213
Superannuation
Excess contributions tax: amendment to reduce liability - release authorityFOI status: may be released
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This document incorporates revisions made since original publication. View its history and amending notices, if applicable.
This ATOID provides you with the following level of protection:
If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.
Issue
Will the Commissioner issue a release authority under section 292-405 of the Income Tax Assessment Act 1997 (ITAA 1997) where an assessment of excess contributions tax is amended to reduce the amount of excess contributions tax payable?
Decision
No. The Commissioner will not issue a new release authority under section 292-405 of the ITAA 1997 where an assessment of excess contributions tax is amended to reduce the amount of excess contributions tax payable, as no liability is imposed under the amended assessment.
Facts
The member received an excess contributions tax assessment for excess concessional contributions. The Commissioner issued a release authority to the member to cover the total amount of the member's liability for excess concessional contributions tax.
The Commissioner received an updated Member Contributions Statement from the member's superannuation fund that showed a reduced amount of concessional contributions.
The Commissioner issued an amended excess contributions tax assessment to reduce the member's liability for excess concessional contributions tax.
Reasons for Decision
Under subsection 292-405(1) of the ITAA 1997 the Commissioner must give a release authority to a person where the person is liable for excess concessional contributions tax or excess non-concessional contributions tax under an excess contributions tax assessment. The release authority is to be given to the person as soon as practicable after the Commissioner makes the excess contributions tax assessment.
Subsection 292-405(2) of the ITAA 1997 requires the release authority to state the amount of excess concessional contributions tax or excess non-concessional contributions tax that the person is liable to pay as a result of the assessment.
An excess contributions tax assessment is made under section 292-230 of the ITAA 1997 and must show:
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- the amount of excess concessional contributions for a financial year or the amount of excess non-concessional contributions for a financial year, and
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- the amount of excess concessional contributions tax or the amount of excess non-concessional contributions tax a person is liable to pay.
Subdivision 292-F of the ITAA 1997 allows the Commissioner to amend an excess contributions tax assessment for a person. The Commissioner is required under subsection 292-310(2) of the ITAA 1997 to give the person a notice of the amendment as soon as practicable after making the amendment. An amended excess contributions tax assessment is taken to be an excess contributions tax assessment for a person for a financial year under subsection 292-310(1) of the ITAA 1997.
The Commissioner is not required to issue a release authority where an excess contributions tax assessment does not result in the person being liable to pay either excess concessional contributions tax or excess non-concessional contributions tax.
Where an amended assessment reduces the liability for excess contributions tax imposed under the original assessment the amended assessment does not result in the person being liable to pay excess contributions tax.
The liability arose under the original assessment (albeit for a higher amount) and the release authority was issued for the amount of that liability. As no liability has been imposed under the amended assessment no new release authority will be issued.
Amendment History
| Date of amendment | Part | Comment |
|---|---|---|
| 11 April 2014 | Reason for Decision | Inserted Note. |
Year of income: Year ended 30 June 2008
Legislative References:
Income Tax Assessment Act 1997
section 292-230
subsection 292-310(1)
subsection 292-310(2)
section 292-405
subsection 292-405(1)
subsection 292-405(2)
ATO ID 2007/214
Keywords
Amending excess contributions tax assessments
Excess concessional contributions
Excess contributions tax assessments
Release authorities -superannuation excess contributions tax
Superannuation
Superannuation excess contributions tax
ISSN: 1445-2782
| Date: | Version: | |
| 15 November 2007 | Original statement | |
| You are here | 11 April 2014 | Updated statement |
| 1 August 2014 | Updated statement | |
| 7 June 2019 | Archived |