ATO “happy” with dividend stripping response from SMSFs

ATO, SMSFs, dividend stripping arrangements, TA 2015/1, offerThe ATO says it is happy with the response from SMSFs in regards to dividend stripping arrangements.

Early in 2015 the ATO issued Taxpayer Alert 2015/1, raising concerns about potential dividend stripping involving private companies and SMSFs.

Later in 2015 the ATO said it would be contacting some SMSFs which may have been involved in arraignments described in TA 2015/1.

The ATO said that SMSFs which chose to self-amend Annual Returns would not be subject to administrative penalties. This offer expired on the 15th of February 2016. Read more...

ATO issues alert on SMSF dividend stripping: TA 2015/1

ATO Taxpayer Alert TA 2015/1: Dividend stripping arrangements involving the transfer of private company shares to a self-managed superannuation fundThe ATO has issued a warning to SMSFs involved in arrangements to maximise claims for franking credits from private companies.

“We are closely scrutinising SMSF members suspected of avoiding their tax responsibilities by channelling company profits through their SMSF,” said ATO Deputy Commissioner Tim Dyce.