Tax schemes prompt super complaints
Mass marketed tax schemes and unpaid Superannuation Guarantee contributions raised the ire of most taxpayers when complaining about superannuation to theAustralian Tax Office (ATO)over the 2001/2002 financial year.
Each year the ATO releases the figures for complaints in the Commonwealth Ombudsman's annual report with this years’ stating more than 2600 complaints were received about nearly 3700 separate issues.
However the ATO says that in one third of the investigations it undertook it felt the cause of the complaint was defective administration.
The ATO received a number of complaints regarding mass marketed schemes when many investors had their income tax assessments amended and as such also received new superannuation surcharge assessments.
Many felt this was a turnaround from the ATO’s stated position that it would not take action to recover funds until the conclusion of a number of tax scheme test cases, at which time investors would have to lodge separate objections to their surcharge assessments.
However the tax office responded that its treatment of superannuation surcharge assessment debts would reflect that of the related income tax debts and that investors would not have to lodge separate objections
In relation to the Superannuation Guarantees, the Ombudsman’s report highlighted a small but steady flow of complaints from employees regarding the alleged failure of the ATO to pursue employers who have not paid contributions.
Complaints also focussed on a perceived lack of feedback from the tax office regarding the pursuit of owed superannuation contributions.
However the Ombudsman’s report says the provisions of the tax law regarding confidentiality may prohibit the ATO from the release of such information.
AUTHOR
Jason Spits
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