Tax issues in succession fund transfers presentation

Published on 29 Aug 13 by NATIONAL DIVISION, THE TAX INSTITUTE

It is the government’s policy to encourage the consolidation of large superannuation funds through mergers. However, this policy objective has not been assisted by the number of “road blocks” in the tax system that increase costs and make it more difficult for fund trustees to determine that mergers are in the best interests of their members. Although, there has recently been some relief via the ability to transfer losses and rollover capital assets, there are still many tax and duty issues that must be considered for a merger.

This presentation examines some of those issues, including:

• in what circumstances, and for what structures, does the loss transfer and CGT asset rollover rules apply
• tax consequences for the transfer of non-capital assets
• issues arising out of the use of pooled superannuation trusts in mergers
• what should be done if one fund values its assets on an after-tax basis and the other values it on a before-tax basis
• issues arising out of deferred tax assets
• no-TFN contribution issues
• the “crystallisation” of members, benefits upon merger issue
• the deductibility of merger costs for the transferee fund
• GST implications for a merger.

Author profile

Ross Stephens CTA

Ross is one of the most recognised tax advisers to the superannuation industry in Australia, with key clientele including many of the largest industry, corporate, public sector and retail funds. He has assisted the Association of Superannuation Funds of Australia with many industry submissions to government, Treasury and the ATO on tax-related matters, most recently in respect of draft ruling TD 2014/D22 on funds’ foreign income tax offset entitlements. - Current at 24 September 2015

More by Ross Stephens

• Fund mergers and other significant transactions paper - 21-August-2015
• Issues for the claiming of FITOs paper - 14-August-2014
• Superannuation workshop - 09-June-1999
• Planning opportunities - 04-June-1998

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