ATO Interpretative Decision
ATO ID 2002/374 (Withdrawn)
Superannuation
Superannuation guarantee scheme: Remission of components of the SGCFOI status: may be released
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This ATO ID is withdrawn as the interpretative issue is covered in ATO ID 2002/309This document incorporates revisions made since original publication. View its history and amending notices, if applicable.
Status of this decision: Decision Withdrawn 3 February 2006
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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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
Does the Commissioner have any discretion to remit the nominal interest component; the administration component; and/or the late penalty component (this component only applies to the period 1 July 1992 to 30 June 1999) imposed on an employer under a Superannuation Guarantee Charge (SGC) assessment?
Decision
The provisions of the Superannuation Guarantee (Administration) Act 1992 (SGAA) do not provide the Commissioner with a discretion to remit or reduce the amounts calculated, nor is the Commissioner empowered with a general discretion which would allow him to reduce the amounts.
Facts
The employer became liable to pay the SGC as a result of a superannuation guarantee shortfall. The SGC is composed of a number of components. The nominal interest component is calculated under section 31 of the SGAA; the administration component is calculated under section 32 of the SGAA; and the late payment penalty component was calculated under the former section 49 of the SGAA.
Reasons for Decision
The issue whether the Commissioner has discretion to remit these amounts was considered in Jarra Hill Pty Ltd v FCT 97 ATC 2132; (1997) 37 ATR 1022. In that case, it was held that as there were no provisions in the legislation giving a discretion to either the Commissioner or a Tribunal, such amounts could be neither reduced nor remitted.
The Commissioner therefore has no power to remit any of the components of the SGC.
Date of decision: 7 October 1998
Legislative References:
Superannuation Guarantee (Administration) Act 1992
section 31
section 32
section 49
Case References:
Jarra Hills Pty Ltd v FC of T
97 ATC 2132
37 ATR 1022
Other References:
Previously released as CDS10127
Keywords
Superannuation guarantee charge
Superannuation guarantee scheme
SGC administration charge
SGC nominal interest
Superannuation guarantee penalties
ISSN: 1445-2782
| Date: | Version: | |
| 7 October 1998 | Original statement | |
| You are here → | 3 February 2006 | Archived |
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