ATO Interpretative Decision

ATO ID 2007/214 (Withdrawn)

Superannuation

Excess contributions tax: amendment to increase liability - release authority
FOI status: may be released

This ATO ID is withdrawn from the database as section 292-405 of the Income Tax Assessment Act 1997 has been repealed with effect from 1 July 2018. The ATO view expressed in this ATO ID is now contained in a straight application of the law in Division 131 of Schedule 1 to the Taxation Administration Act 1953. Guidance on the issue contained in this ATO ID can be found at Release authorities. (QC 20076)

This document incorporates revisions made since original publication. View its history and amending notices, if applicable.

CAUTION: This is an edited and summarised record of a Tax Office decision. This record is not published as a form of advice. It is being made available for your inspection to meet FOI requirements, because it may be used by an officer in making another decision.

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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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 increase the amount of excess contributions tax payable?

Decision

Yes. The Commissioner will issue a release authority under section 292-405 of the ITAA 1997 where an assessment of excess contributions tax is amended to increase the amount of excess contributions tax payable, as an additional liability is imposed under the amended assessment. The release authority will be issued for the additional amount of excess contributions tax payable.

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 an increased amount of concessional contributions.

The Commissioner issued an amended excess contributions tax assessment to increase 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:

•: the amount of excess concessional contributions for a financial year or the amount of excess non-concessional contributions for a financial year, and
•: 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 required to issue a release authority where an excess contributions tax assessment results in the person being liable to pay either excess concessional contributions tax or excess non-concessional contributions tax.

Where an amended assessment increases the liability for excess contributions tax imposed under the original assessment the amended assessment also results in the person being liable to pay excess contributions tax.

An initial liability arose under the original assessment and a release authority was issued for the amount of that liability. As an additional liability for excess contributions tax has been imposed under the amended assessment a new release authority is issued for the amount of the additional liability.

Amendment History

Date of amendment	Part	Comment
1 August 2014	Reason for Decision	Removed Note.
2 May 2014	Reason for Decision	Division 292 ITAA 1997 has been substituted with provisions applying to excess non-concessional contributions tax only by the Tax Laws Amendment (Fairer Taxation of Excess Concessional Contributions) Act 2013 with effect from 29 June 2013. For application, transitional and saving provisions see note under Div 291 of the ITAA 1997. The effect of these saving provisions is to ensure the continuing application of the excess concessional contributions tax system for the 2012-13 and prior financial years

Date of decision: 15 November 2007

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)

Related ATO Interpretative Decisions
ATO ID 2007/213

Keywords
Amending excess contributions tax assessments
Excess concessional contributions
Excess contributions tax assessments
Release authorities -superannuation excess contributions tax
Superannuation
Superannuation excess contributions tax

Siebel/TDMS Reference Number: 5850532,
Siebel 1-576LT52;1-FWK710V

Business Line: Superannuation

Date of publication: 23 November 2007

ISSN: 1445-2782

history

	Date:	Version:
You are here	1 January 1001	Updated statement
	15 November 2007	Original statement
	2 May 2014	Updated statement
You are here	7 June 2019	Archived

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