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Australian Lawyers and Consultants

“Controller” Superannuation Cases

September 2002

On 3 December 2001, Justice Merkel of the Federal Court handed down judgment against the taxpayer in the case of Harris v FC of T (2002 ATC 4017). The taxpayer was denied a tax deduction for contributions to a non-complying superannuation fund made under Sec. 82AAE where the taxpayer claimed to be both the “eligible employee” and “controller”.

In Elias v FC of T (3 July 2002) (2002 ATC 4579), a taxpayer failed in the Federal Court to win a deferment from additional tax and penalties in relation to an adverse tax assessment involving a similarly disallowed “controller superannuation arrangement”. This was despite the fact that the client had relied on a favourable private tax ruling. The ATO was not bound by its own tax ruling given to the taxpayer’s lawyer in relation to another of the lawyer’s clients. The Court also held that the taxpayer had not given sufficient information to the Tax Office on his financial position and had not shown sufficient cause to justify the ATO granting a tax deferment.

For further information, contact Joe Lederman at BALDWINS, Australian Lawyers & Consultants.

Return to the Superannuation Law Archive or Australian Tax Law Archive.