The Australian Taxation Office (ATO) has announced it will be paying particular attention to self-managed superannuation funds (SMSF) that have perpetrated repeat compliance breaches as reported on audit contravention reports (ACR) lodged with the regulator.
In all, the ATO said it expected to take further action on 2000 ACRs it received for the 2011 financial year.
Last year’s review of ACRs lodged showed the main contraventions involved loans to members, the in-house assets rule, lack of proper documentation, and other administration issues.
Moreover, a large number of the 185 SMSFs the ATO made non-complying for the 2010 financial year had issues in regard to in-house assets and member loans, which flagged these issues as specific areas of focus for this year’s ACR review.
The current ATO compliance program covers around 4 per cent of SMSFs and about 7 per cent of approved auditors.
The SMSF regulator has also announced it is continuing its vigilance against the use of SMSFs for illegal early access to people’s retirement savings.
“We are currently assessing all new trustees of SMSFs and contacting new SMSF trustees who present a risk to ensure that they understand their legal obligations as SMSF trustees, and working to bring criminal charges against any scheme promoters or trustees who illegally access, or assist others to illegally access their super earlier,” the ATO said in its latest SMSF newsletter.
The penalties for illegally accessing superannuation early include a jail term of up to five years and a fine of up to $220,000.
Two individual trustees were sentenced to two years’ jail each for promoting illegal early access schemes last year.
