Issue
Whether the taxpayer is qualified to receive an extension of time to roll-over in consequence of having received incorrect advice from work associates not to roll-over an Eligible Termination Payment (ETP).
Decision
The incorrect advice from work associates does not qualify the taxpayer for an extension of time to roll over an ETP.
Facts
The taxpayer elected to receive a cash payout of their superannuation fund ETP. This election was based on advice from work associates that a rolled-over superannuation benefit could only be accessed after reaching age 55 and retiring permanently.
The Statement of Termination payment received by the taxpayer showed the date of payment as 11 December 1997. The rolled-over amount was shown as nil. The taxpayer lodged a request with the Commissioner on 19 March 1998 for an extension of time to roll-over. In a letter from the taxpayer's tax agent it was stated they believed the taxpayer received no advantage in taking a lump sum ETP. However, there was a financial disadvantage in terms of tax paid that could be deferred, or possibly eliminated, if the taxpayer had sought professional advice and had arranged to roll-over the entitlement.
Reasons For Decision
Taxation Determination TD 96/36 recognises there are certain circumstances which may prevent a taxpayer from immediate rolling over an ETP.
However, the taxpayer did have the opportunity to roll-over the ETP. The extension of time to roll-over the ETP from the superannuation fund was not allowed.