The Age --- Page: 7 : 2 April 2008 Original article by Annette Sampson
LexisNexis Summary
The taxation of superannuation is a complex area in Australia. The Australian Taxation Office (ATO) has issued two alerts warning taxpayers and fund trustees about uncommercial trust arrangements. The ATO noted that it is reviewing these arrangements, and taxpayers should be wary about any tax deductions claimed. The ATO is worried about people using trusts to gain tax benefits that are not properly aligned with their interest in the trust. Self-managed super funds may be using these schemes because income received by super funds is taxed at 15%, a lower rate than applies to companies or middle to high income earners. The alerts refer to the situation where a self-managed super fund gets income from a trust controlled by an individual or family group.
