DIY Super Fund Tax Confusion at Pension Stage

Nov ’12
SmartCompany reports that the ATO are paying close attention to tax exemptions claimed in the pension-paying phase for SMSFs. “Exempt current pension income” (ECPI) is the income set aside to pay for pensions.  An SMSF can claim an exemption from income tax in their annual return but it is not automatically entitled to the exemption.  Only earnings and capital gains from assets supporting the pension payment can be included, not employer contributions or assessable employee contributions.  It is important that assets are re-valued to current market value before pension payment and an actuarial certificate is lodged – otherwise the ECPI claim may be disallowed.  Come in an see us if you need advice on how to correctly manage your SMSF taxes in the pension phase.

Click here to read the full story

Photo compliments of Watcharakun at FreeDigitalPhotos.net

Recent Comments

No Comment.

Awards

Our Location

MJA Business Solutions
Suite 3/24 Edgar Street,
Coffs Harbour NSW 2450

The Big Red Building
Cnr Mildura & Edgar St

PO Box 4504
Coffs Harbour Jetty NSW 2450

Make Appointment

Please fill up the form below.