iscoverAsset valuation for superannuation funds, particularly for wealthy clients, is an issue that one of its outgoing directors said the tax office “can no longer hide from.”
‘We hid from the issue,’ ATO says amid fresh compliance push
22 October 2017
•
5 minute read
In light of the superannuation reforms, asset valuation has become a high priority on the tax office’s compliance watchlist. For the purposes of the transfer balance cap, total superannuation balance and CGT relief, valuations are now particularly pivotal.
“We probably hid from the issue of asset valuation,” said superannuation director Howard Dickinson at the SMSF Summit in Adelaide last week.
You’re out of free articles for this month
To continue reading the rest of this article, please log in.
Create free account to get unlimited news articles and more!
“We can no longer hide from asset valuations. We need to know that they are being appropriately monitored and managed,” he said.
Mr Dickinson stressed the importance of asset valuations using objective and supported data. This has always been demanded by the ATO’s valuation guidelines for SMSFs, but is now particularly crucial given the new balance caps that clients are subject to.
“Obviously a cap on the value an individual can hold in the tax-free, concessional environment is very dependent upon the valuation of those assets you put in there,” Mr Dickinson said.
“The consequences of an inappropriate asset valuation either from total superannuation or transfer balance cap is a key issue that we need to prepare for,” he said.
You can read more about the ATO’s views on asset valuations here.
You need to be a member to post comments. Become a member for free today!
