Excess TBC incidents expected to be low: ATO

The ATO has issued a small number of excess transfer balance cap (TBC) determinations to SMSFs that have lodged a transfer balance account report (TBAR) however is not anticipating this number to escalate.

Since events-based reporting to the ATO was made accessible through the TBAR, some 900 SMSFs have voluntarily submitted a TBAR, which reported the TBC amounts for some 1200 members, the regulator revealed.

This has resulted in the issuance of a small number of excess TBC determinations.

If an individual who is a member of an SMSF receives an excess TBC determination, their SMSF will need to report sooner than 1 July 2018.

“For example, a commutation must be reported 10 business days after the end of the month in which the commutation occurs,” the ATO said.

“But based on the information we have to date, we expect the incidence of excess contributions determinations to be quite low.

“However, to put this into context, to my mind reporting is merely bringing to the light decisions already made by trustees or members.”

The ATO restated that if an individual didn’t hear from the ATO or receive an excess TBC determination did not mean the fund was in the clear, as relevant account information may not be known by the tax office.

Copyright © SMS Magazine 2024

ABN 43 564 725 109

Benchmark Media

Site design Red Cloud Digital