The Australian Taxation Office (ATO) will increase its scrutiny of self managed superannuation funds to ensure they meet the definition of what constitutes such a fund.
"We will not be using a big stick approach. We are willing to work with you," ATO deputy commissioner of superannuation Raelene Vivian told the SPAA National Conference yesterday.
From July 2007, the ATO will have a wider jurisdiction to monitor self managed superannuation funds (SMSF) and ensure they meet the definition of what constitutes such a fund.
"We will adopt a flexible approach and work with fund trustees to ensure their SMSF is compliant. We will be willing to help trustees restructure their funds, or help them work with the Australian Prudential Regulation Authority or in some cases assist them in winding up the fund," Vivian said.
Vivian warned, however, that the ATO will act accordingly if a SMSF has not taken the appropriate steps to be compliant.
Superannuation funds, especially large superannuation were also encouraged by the ATO to ensure their clients provide the office with Tax File Numbers (TFN) otherwise clients will risk the possibility of paying higher taxes.
