ATO Interpretative Decision
ATO ID 2002/455 (Withdrawn)
Superannuation
Amendment of surcharge assessmentFOI status: may be released
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This ATO ID is withdrawn as it is a straight application of the law and does not contain an interpretative decision.This document incorporates revisions made since original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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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
Can the Commissioner of Taxation (Commissioner) amend an assessment of surcharge in accordance with section 19 of the Superannuation Contributions Tax (Assessment and Collection) Act 1997 (SCTA),where the amount of surchargeable contributions used in the calculation of the assessment is subsequently found to be incorrect?
Decision
Yes. The Commissioner can amend an assessment of surcharge in accordance with section 19 of the SCTA where the amount of the contributions is greater or less than the amount that was taken to be the amount of the contributions for the purposes of the assessment.
Facts
The member's superannuation providers reported to the Commissioner surchargeable contributions for the member for the financial year.
The member also claimed a deduction for superannuation contributions for the financial year under section 82AAT of the Income Tax Assessment Act 1936 (ITAA 1936).
The member received superannuation contributions surcharge assessments in respect of surchargeable contributions made to the member's superannuation providers for the financial year.
The Commissioner became aware of an error in the calculation of surchargeable contributions and subsequently informed the member and provider.
As a result of the error in the addition of surchargeable contributions, the Commissioner issued amended surcharge assessments to reflect the correct amount of total surchargeable contributions reported.
Reasons for Decision
Section 8 of the SCTA defines the 'surchargeable contributions' of a member for a financial year. Among other items, it includes employer contributions in relation to a member and any amounts that are allowed as a superannuation deduction under section 82AAT of the ITAA 1936.
Superannuation contributions surcharge is payable on a member's surchargeable contributions if a member's adjusted taxable income for the financial year is greater than the surcharge threshold for that year.
If, after the making of an assessment of surcharge on a member's surchargeable contributions for a financial year, the amount of the contributions is less than or greater than the amount that was taken to be the amount of the contributions for the purposes of the assessment, subsection 19(3) of the SCTA allows the Commissioner to amend the assessment to take this matter into account.
As a result of the incorrect calculation of total surchargeable contributions, the amount of the contributions used for the purposes of the assessment was greater than the amount that should have been taken into account.
The amendment by the Commissioner reduces the amount of surchargeable contributions subject to the surcharge.
Date of decision: 15 August 2001Year of income: Year ended 30 June 2000
Legislative References:
Superannuation Contributions Tax (Assessment and Collection) Act 1997
section 8
section 19
subsection 19(3)
section 82AAT
Keywords
Superannuation contributions tax
Superannuation contributions surcharge
Surchargeable contributions
Amendment of Assessments
ISSN: 1445-2782
| Date: | Version: | |
| 15 August 2001 | Original statement | |
| You are here | 15 December 2006 | Archived |