False or Misleading Statements Which Do Not Result in a Shortfall Amount – New ATO Practice Statement PS LA 2012/4

ATO Practice Statement PS LA 2012/4

Practice Statement
PS LA 2012/4

The ATO has recently published Practice Statement PS LA 2012/4, which details how they will administer the false or misleading no-shortfall penalty. They tell us that trustees who make a false or misleading statement after 4 June 2010 may be liable for penalties, even where this statement does not result in a shortfall amount. No penalty is applied if you took reasonable care at the time you made the statement. We learn further that the statement must also be false or misleading in a ‘material particular’ for this penalty to apply. For example, a rollover benefit statement and a notice to claim a tax deduction form both contain material particulars.

****Remember – As an SMSF trustee, you have the ultimate responsibility for your SMSF, even if you use professional services such as administration providers, tax agents or other financial advisers.

An example is given in the practice statement about an SMSF loan to members and where the new penalty may apply in relation to SMSFs.

Note – The statement:

  1. Can be written or verbal;
  2. Must be material to tax or super law;
  3. Can be for any taxes, including reporting, lodgment, debt and registration statements made by an entity.

For more go to: Superannuation and false or misleading statements which do not result in a shortfall amount, Law Administration Practice Statement PS LA 2012/4, Division 284 of Schedule 1 of the Taxation Administration Act 1953, Miscellaneous Taxation Ruling MT 2008/2 Shortfall penalties: administrative penalty for taking a position that is not reasonably arguable


About SuperBenefitnews

Self-Managed Superannuation Service Providers in Australia. SuperBenefit provides a wholistic SMSF assistance, education and administration service continuum - 1. “assistance” is help of whatsoever nature where our overall SMSF experience and knowledge enables us to provide assistance/help without any legal (or “license”) limitations. 2. “education” involves providing knowledge through teaching, coaching and mentoring about all matters SMSF, including (but not limited to) investment issues such as equities and property, 3. “administration” encompasses all admin aspects of legally required SMSF trustee and member record keeping including (but not limited to) audit and ATO matters. In keeping with our key point that SuperBenefit does not provide Financial Advice, where issues arise from 1, 2, and/or 3 above Indicate a need for a legally authorized provider (such as a Financial Adviser) and the client does not have their own service provider, the client can utilize SuperBenefit’s ‘Connect Assist’ … SuperBenefit, in itself, does not provide Financial Advice, but it does provide the wherewithal for great SMSF service. WE do not provide Financial Advice or any other service that requires a legally authorized provider. However, where such advice or service is required we have our ‘Connect Assist’, a SuperBenefit resource we use to connect clients to a Licensed Advisor or other legally authorised service provider. Call us 0407 361 596, no obligation FREE Connection call to see how we can help you!
This entry was posted in Basics about Super, Super Law & Compliance, Super Tax and tagged , , , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s