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The ATO has launched the Super Scheme Smart initiative toninform people about retirement planning schemes that are of increasing concern.nAccording to the ATO, people approaching retirement are most at risk ofnbecoming involved in schemes that are “too good to be true”. While retirement planning schemes cannvary, you should be aware of some common features of problematic schemes. Thesenschemes generally:
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• nare artificially contrived and complex, and usuallynconnected with a self managed super fund (an SMSF);
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• ninvolve a lot of paper shuffling;
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• nare designed to leave you paying minimal or no tax,nor even receiving a tax refund; and/or
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• naim to give you a present -day benefit.
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The ATO has previously issued statements about concerningnschemes that involve non-arm’s length limited borrowing arrangements, dividendnstripping and diverting personal services income.
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TIP:nThe ATO encourages people to report their involvement in such schemes early. Innspecific circumstances, penalties may be reduced. Please contact our office fornmore information.
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Important: Clients should not act solely on the basis of the material contained in Update. Items herein are general comments only and do not constitute or convey advice per se. Also, changes in legislation may occur quickly. We therefore recommend that our formal advice be sought before acting in any of the areas. This update is issued as a helpful guide to clients and for their private information.