Notice of intent to claim or vary a deduction for personal super contributions

Concessional contributions:

When doing our SMSF tax returns & financials, our accountant also fills in a "Notice of intent to claim or vary a deduction for personal super contributions" as part of one PDF file, which we just Docusign it all.

According to the ATO's website this form needs to be completed and given to your super fund prior to lodging a tax return, and the super fund writing back to confirm acceptance. Is this still necessary for the member to do this themselves and for the SMSF to write back, if the accountant is doing the "Notice of intent to claim"? I guess the SMSF would still need to right back to the member confirming anyway?

 

i just did two for a client last night. strange timing.

i frequently see the notice of intention to claim form completed and signed by the members making the contribution but frequently dont see the notice of acceptance signed by the trustee of the smsf. both are required.

the accountant is merely assisting both the members and the smsf fulfil their responsibility. so yes you are right the smsf must give a notice to the member.

 

I have seen several instances instances where a tax form is lodged before the fund ackowledges (or hasnt done so at all !!!). The wording of tax law allows the ATO to cancel the deduction as s292.90 ITAA97 (1) states "BEFORE"" . By its definition a contribution is not a concessional contribution unless the notice requirement is met. The ATO cross matches this personal return data with fund reported contribution data in due course. If amendment periods expire then no recovery of the problem can be addressed.

The ATO inserted a new requirement in the tax form in recent years that asks if the taxpayer has the notice from the fund (Y/N). Agent software wont allow lodgement if it is a "N"

I would make sure YOU hold the fund confirmation letter before you sign your own return. The tax agent is beling helpful but it could expose you to risk if they dont strictly follow the process. They may be neligent in lodgement where there is no valid notice and they were involved in the notice process. We occassionally assist such notices (esp for SMSFs) but never lodge until WE hold a copy of the fund acknowledgement letter to safeguard our interests and that of our clients.