ATO Interpretative Decision
ATO ID 2002/436 (Withdrawn)
Superannuation
Non-quotation of a member's tax file number (TFN) for a particular superannuation account and the application of surchargeFOI status: may be released
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This ATO ID is withdrawn because superannuation contributions surcharge assessments are not made in respect of financial years after the 2004-2005 financial year. Despite its withdrawal, this ATO ID is still a precedential view for decisions in respect of superannuation contributions surcharge assessments for financial years from 1996-1997 up to and including 2004-2005.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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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 of Taxation (the Commissioner) amend a surcharge assessment in accordance with section 18 of the Superannuation Contributions Tax (Assessment and Collection) Act 1997 (SCTA) where the member has subsequently quoted their TFN to the Commissioner, and the amended assessment would result in a lower surcharge liability than the original assessment?
Decision
Yes. In accordance with subsection 18(2) of the SCTA, where a member quotes their TFN to the Commissioner after an assessment of surcharge has been made, the Commissioner will amend the assessment to reduce the amount of surcharge liability to the amount that would have been payable if the Commissioner had known the TFN when the original assessment was made.
Facts
The member did not quote their TFN to the relevant superannuation provider in respect of their superannuation account with that provider.
The Commissioner took all reasonable steps to determine the member's TFN.
The Commissioner was unable to determine the member's TFN at the time the assessment was made.
The Commissioner raised a surcharge liability on the reported surchargeable contributions for the relevant superannuation account that did not have the member's quoted or derived TFN.
The member subsequently quoted their TFN to the Commissioner after the surcharge assessment was made.
Reasons for Decision
In accordance with section 5 of the Superannuation Contributions Tax Imposition Act 1997, a 15% surcharge may be imposed on surchargeable contributions for non-quotation of a member's TFN in respect of a particular superannuation account. If the Commissioner, after taking all reasonable steps to determine a member's TFN cannot find that TFN, the surcharge may apply to surchargeable contributions depending on the circumstances.
Where no TFN is reported for an account opened on or after 7 May 1997, a surcharge rate of 15% will be applied to the member's surchargeable contributions. Where the account was operating before 7 May 1997 and the contributions received by the member exceeds the surchargeable contributions threshold for the relevant financial year, a 15% surcharge rate will be applied to the member's surchargeable contributions.
In this case, the Commissioner was unable to determine the member's TFN in respect of a particular superannuation account and accordingly applied the surcharge to the surchargeable contributions reported in respect of the relevant account. The member subsequently quoted their tax file number to the Commissioner after the assessment was made.
Subsection 18(2) of the SCTA ensures that the Commissioner will amend the assessment to reduce the amount of surcharge to the amount that would have been payable if the Commissioner had known the member's TFN when the assessment was made.
Date of decision: 28/06/2001
Legislative References:
Superannuation Contributions Tax (Assessment and Collection) Act 1997
section 18
subsection 18(2)
section 5
Keywords
Default assessments
Tax file number
Superannuation contributions tax
Superannuation contributions surcharge
Surchargeable contributions
ISSN: 1445-2782
| Date: | Version: | |
| 28 June 2001 | Original statement | |
| You are here | 27 November 2009 | Archived |