The Australian Taxation Office (ATO) will be turning its attention, for the first time, to the activities of the largest Self-Managed Superannuation Funds (SMSFs) as part of the regulator’s compliance program for the 2013 financial year. Click Here for MORE
Specifically the ATO site says:
This year, the focus of our compliance activity will be on:
- New trustees, to ensure they can operate their SMSF and are not seeking to illegally access their retirement benefits;
- Lodgement of fund annual returns to improve timeliness and also, in the case of new funds, to ensure they are entitled to receive their notice of compliance;
- Irregularities in exempt current pension income and non arm’s length transactions;
- Re-reporting of contributions and compliance with excess contributions tax release authorities;
- Breaches of trustee obligations reported to us by approved auditors.
Where trustees have committed less serious breaches in their obligations, we work with them to rectify and unwind transactions so that the fund can continue to operate legitimately. In more serious cases we take firmer action, including imposing penalties, making funds non-complying (with the loss of concessional tax treatment), disqualification of trustees and prosecution.
“For the first time we will run a program focused on the largest SMSFs to check they are meeting their regulatory and tax obligations.” ATO Assistant Commissioner Superannuation Stuart Forsyth told delegates at the Small Independent Super Funds Association SMSF Forum in Brisbane on Friday. The driving force behind the new initiative is to confirm how some of the largest asset balances within the SMSF sector actually came about. As Darin Tyson-Chan of Investor Daily reports READ MORE