A trustee of a self-managed superannuation fund (SMSF) has been sentenced to two years imprisonment, to be released after eight months, for unlawfully allowing the early access of superannuation benefits.
Sydney-based Atan Ona Kassongo was convicted after an ASIC investigation found he had failed to ensure his SMSF, the Kassongo Superannuation Fund (KSF), was maintained in accordance with the sole purpose test.
The preserved superannuation benefits of 192 superannuants totalling $4,055,043 were deposited by Kassongo into the bank accounts of the KSF. These funds were rolled over from 56 complying superannuation funds.
Kassongo then used the KSF to obtain early access to these benefits by withdrawing and distributing the funds to the superannuants and agents who helped him. He retained over $605,000 for himself by way of a commission.
At the time the KSF received the superannuation benefits from the complying superannuation funds, Kassongo was aware that he had an obligation to preserve these benefits until the superannuants had satisfied a condition of release but had no intention of doing so.
Sentenced in the District Court of New South Wales, Kassongo's early release is conditional upon entering a $1000 security to be of good behaviour for a period of three years.
In July 2009, Sonatane Haitoni Hafoka was given a suspended sentence of six months imprisonment after pleading guilty to aiding and abetting Kassongo to allow the early access of superannuation benefits.
These convictions follow an investigation conducted with the assistance of the Australian Taxation Office (ATO).
The ATO reviews the taxation returns of superannuants who unlawfully obtain the early release of their superannuation benefits. These superannuants may be liable for unpaid tax as well as penalties.
