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
Digital advice tools are on the rise, but licensees will need to ensure they still meet adviser obligations or potentially risk a class action if clients lose money from a rogue algorithm.
Shaw and Partners has merged with Sydney wealth manager Kennedy Partners Wealth, while Ord Minnett has hired a private wealth adviser from Morgan Stanley.
Australian investors are more confident than their APAC peers in reaching their financial goals and are targeting annual gains of more than 10 per cent, according to Fidelity International.
Zenith Investment Partners has lost its head of portfolio solutions Steven Tang after 17 years with the firm, the latest in a series of senior exits from the research house.
