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Have the ATO Gone Way Too Far This Time?.

Article by WealthSafe.

Date Published: 17 Oct 2013

I woke up today and I couldn’t believe my eyes.

The ATO have announced they are cracking down on SMSFs moving into pension phase.

Now, mind you, the ATO losing their marbles is nothing new. But the reason they’re going ape this time is almost unbelievable, and beyond insanity.

Very simply, the ATO have released a new draft ruling about SMSFs. They’re saying if you transfer shares, property or other assets into a SMSF just before retirement, and sell shortly after to get out of CGT, this could be tax avoidance.

I mean seriously, you’ve got to be kidding me.

Whatever happened to the famous statement of the House of Lords in the Duke of Westminster case in 1936 when Baron Tomlin said …

Every man is entitled if he can to order his affairs so as that the tax attaching under the appropriate Acts is less than it otherwise would be. If he succeeds in ordering them so as to secure this result, then, however unappreciative the [Tax Office] or fellow taxpayers may be of his ingenuity, he cannot be compelled to pay an increased tax …

Or as the House of Lords also said in 1929 …

“No man in this country is under the smallest obligation, moral or other, so to arrange his legal relations to his business or to his property as to enable the [Tax Office] to put the largest possible shovel into his stores … “

It is everyone’s right to minimize their tax in Australia in the best way possible!

Retirement tax planning has been common since Jesus was a boy. Well maybe an exaggeration … but I am sure you get the drift!

Anyway you’ll have to be especially careful when planning your tax for retirement. That is now abundantly clear thanks to the ATO and their abundant wisdom!

Have a read for yourself …

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