ATO focus on SMSF non-compliers
The ATO, as regulator of self managed superannuation funds (SMSFs), will be taking stronger compliance action against serial non-compliers, focusing on SMSF trustees who do not deliver on agreements in enforceable undertakings. In an address to the Chartered Accountants Australia and New Zealand SMSF Conference, Assistant Commissioner Kasey Macfarlane spoke on the ATO’s broad compliance approach and risk framework as well as their interaction with the Commissioner’s regulatory powers.
Ms Macfarlane highlighted the following issues as being in the ATO’s radar for 2015/16:
individuals who enter the SMSF sector with poor personal taxation lodgement histories and no or limited income
SMSFs with overdue annual returns
breaches reported in auditor contravention reports that have not been rectified
SMSFs that have significant changes in assets and income, outside the previous pattern of the fund and without obvious reason
possible non-commercial related-party investments or transactions
non-compliance with pension rules, and
inappropriately claimed tax deductions when a fund is in pension phase.
She spoke on aggressive tax planning, such as dividend stripping arrangements and also touched on the role of independent SMSF auditors and their specific risk indicators. She discussed the Commissioner’s compliance tools available from 1 July 2014 being, education directions, rectification directions and administrative penalties which, she noted, will be used to improve compliance, not to increase revenue.
She also highlighted a number of recent cases as illustrative of the circumstances and types of contraventions where the ATO will take stronger enforcement action. She reminded accountants giving SMSF advice after 30 June 2016 to obtain a limited Australian Financial Services license and also encouraged SMSF trustees to take early action to rectify any contraventions and engage with the ATO.
The full transcript of the speech is available on the ATO’s website.
Source: Assistant Commissioner’s speech at National SMSF Conference, 14 September 2015, Gold Coast.