Recent AAT case holds that American IRAs are neither super funds nor schemes in the nature of a super fund for Australian tax purposes
A recent AAT case has held that an American IRA – Individual Retirement Account – is neither a superannuation fund nor a scheme in the nature of a superannuation fund for Australian tax purposes.
Consequently any payment from an IRA will have no special tax treatment under Division 305 and if paid to a superannuation fund by the member will be treated as a non-concessional contribution, and if paid directly by the operator of the IRA to a superannuation fund will be treated as an assessable contribution in the hands of the fund trustee and therefore treated as a concessional contribution for contribution cap purposes.
Case details are Baker v ATO [2015] AATA 469.
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