This paper covers:
- current law and reason for suggested changes
- superannuation guarantee scheme should be classified as a social security tax for U.S. tax purposes
- treasury regulations promulgated under Sections 402 and 83 should be clarified to exempt the Australian superannuation funds
- since Australian superannuation funds are the equivalent to a social security program they should not be analyzed as foreign employee trusts under U.S. tax law
- several areas of U.S. tax law already exempt social insurance programs of foreign governments from tax and reporting obligations.