Superannuation civil penalties for breaches of sole purpose
Mon Nov 12 2007
Weekly Tax Bulletin --- Page: 1847 : 26 October 2007 Original article by Stuart Jones
LexisNexis Summary
The Federal Court has fined the husband and wife trustees of a self managed superannuation fund $A20,000 and $A10,000 respectively. The two were also directed to pay the Australian Taxation Office (ATO) court costs of $A32,500. The Court found that the two had breached the sole purpose test of the Superannuation Industry (Supervision) Act by using the fund's assets to pay a debt of one of the fund's members, as well as using the assets to provide one of the members with financial aid.
