Division 293 release authority
Superannuation Law requires the release to the ATO part of a member’s benefits to pay the member’s assessed Division 293 Tax when the ATO serves on the Trustee a “Release Authority for Division 293 tax” (ATO Release Authority).
This Written Resolution resolution is to acknowledge that the ATO has served on the Trustee an ATO Release Authority in respect of a member and has requested the Trustee to release all or part of the member’s benefits to the ATO to pay all or part of the assessed Division 293 Tax and to authorise the processing and implementation of that request.
1. This resolution may be used to authorise the release of monies to the ATO on account of a Division 293 Tax liability of a member.
2. This is a template document. It will have to be modified for the particular requirements of each superannuation fund. MIKEY I CANT SEE WHERE ON THE RESOLUTION THIS IS NEEDED BUT MIGHT BE A WORD DOC?
3. This document is suitable for superannuation funds which have adopted the SUPERCentral Governing Rules or the Townsends Business & Corporate Lawyers Governing Rules as the Governing Rules for the superannuation fund.
4. For superannuation funds governed by non-SUPERCentral or non-Townsends Business & Corporate Lawyers governing rules, please review the applicable trust deed and governing rules to determine if the template is suitable for the Superannuation Fund
5. Monies can only be released if and when the ATO provides to the Trustee a completed “Release Authority for Division 293 tax” (“the ATO Release Authority”) in respect of the member.
6. The amount to be released cannot exceed the “Division 293 tax release authority amount” which is specified at Section A Item 2 of the ATO Release Authority.
7. The ATO Release Authority cannot be processed by the trustee if the ATO Release Authority has been provided to the trustee more than 120 days after the Issue Date of the ATO Release Authority (the Issue Date is specified at Section A Item 2).
8. The released amount must be paid directly to the ATO.
9. The Trustee must execute the Release Authority within 10 business days and complete Sections D and E of the Release Authority. The Released Amount must be paid to the ATO. For this purpose, a Payment Slip (or copy) is attached to the ATO Release Authority.
10. If the requested amount cannot be paid or paid in full, the Trustee must complete Section D Item 25 indicating the relevant reason; that is, insufficient account balance, stale release authority, or “other”.
11. The Trustee must complete and sign the ATO Release Authority. In particular, Section E declaration must be signed by the Trustee (or its agent). The completed and signed authority must be forwarded to the ATO within 10 business days of the payment. This can be done by posting or faxing: Post “ATO, PO Box 3578, Albury, NSW, 2640” or fax to 1300 139 024.
12. The ATO will notify the member of the outcome of the Release Authority: whether the entire requested amount was paid to the ATO; whether only a portion of the requested amount was paid to the ATO; or whether none of the requested amount was paid.
13. Penalties can be imposed on the Trustee – if the Trustee releases more than the specified amount, does not pay the released amount within 10 business days of receiving the ATO Release Authority, or fails to forward the completed and signed ATO Release Authority to the ATO within 10 business days of payment of the released amount.
14. This resolution can be used by both corporate and by individual trustees.
15. All trustees/directors must sign the resolution.
16. The resolution must be dated.
For further information or assistance please email info@supercentral.com.au or call 02 8296 6266