ATO turns focus to MIS tax deductions
The Australian Taxation Office (ATO) has warned it will pay close attention to claims relating to managed investment schemes, as well as other retail investment products, over the coming year to ensure any claimed deductions are legitimate.
The ATO expects an increase in the number of people claiming investment sale losses in the coming year and has written to holders of investment properties, shares and managed funds to warn them of their capital gains tax obligations.
It will also continue to encourage participants of “dodgy” schemes to make voluntary disclosures and take advantage of possible reduced penalties. Schemes such as those offering illegal early access to super remain a concern for the tax office.
The ATO will work to raise awareness of the reduction to concessional contribution caps for super to ensure that people who exceed the caps are identified and action is taken, and will follow up complaints from employees about employers who do not pay the correct amount of super.
The ATO will also increase its compliance work to match the increase in self-managed super funds, targeting schemes designed to illegally release super funds early, and ensuring that approved auditors fulfil their role properly. It will cover at least 10 per cent of all new funds during the year, focusing on loans, in-house assets, borrowings and non-arm’s length transactions.
Recommended for you
Licensee Centrepoint Alliance has completed the acquisition of Brighter Super’s annual review service advice book, via Financial Advice Matters.
ASIC has launched court proceedings against the responsible entity of three managed investment schemes with around 600 retail investors.
There is a gap in the market for Australian advisers to help individuals with succession planning as the country has been noted by Capital Group for being overly “hands off” around inheritances.
ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager.
