The ATO is considering where new “risk flags” lie in relation to exempt current pension income with a view to introduce further guidance and dedicate compliance resources to the area.
Speaking at the Tax Institute’s Superannuation Conference, ATO deputy commissioner of superannuation, James O’Halloran, said emerging areas of interest for the regulator include the increased adoption of segregation and movement of assets into the pension phase, and the use of tax parcel selection and propagation methodologies by funds.
“This includes the potential application of Part IVA when the selection methodology appears to be to obtain tax benefits and whether the assets have truly been segregated for the purposes of the tax law,” Mr O’Halloran said.
“We are now considering what advice we can issue to give greater guidance on where the ‘risk flags’ are set and where compliance resources will be allocated for follow up with funds.”
Mr O’Halloran also flagged that the ATO would be increasing its scrutiny of offshore investment by superannuation funds, particularly as levels of international investment become “increasingly significant”.
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