ATO poised to ramp up focus on key compliance area
Warning about SMSF compliance and the ATO.
With 8 per cent of funds failing to meet their lodgement obligations for the last two years at least, the ATO is set to up its compliance focus on non-lodgement in FY2018-19.
Approximately 46,000 funds have failed to meet their reporting obligations for two or more years.
Following contact from the tax office, a small percentage of funds have taken action to bring their reporting and lodgements up-to-date.
With those funds that are unresponsive, the ATO’s actions include facilitating their exit from the sector.
“The failure of SMSFs to lodge annual returns concerns us because there is not visibility or transparency about whether or not relevant SMSFs have satisfied their regulatory and income tax obligation,” an ATO spokesperson told SMSF Adviser.
“This means that individual members’ retirement savings may be at risk due to regulatory irregularities, and moreover the ATO is also not able to fulfil the regulatory role it is statutorily commissioned to do in relation to those funds,” the spokesperson said.
“We will be further heightening our focus on SMSF annual return non-lodgement in 2017-18. SMSF trustees and professionals aware of funds with outstanding annual return lodgements are strongly encouraged to engage with us and work with us to bring outstanding lodgements up to date.
“Those SMSFs who do not take steps to bring their lodgements up-to-date may face the possibility of disqualification of trustees and/or the fund being made non-complying.”
KATARINA TAURIAN
Monday, 22 May 2017
www.smsfadviser.com
Hot Issues
- ATO encourages trustees to use voluntary disclosure service
- Beware of terminal illness payout time frame
- Capital losses can help reduce NALI
- Investment and economic outlook, August 2024
- What the Reserve Bank’s rates stance means for property borrowers
- How investing regularly can propel your returns
- Super sector in ASIC’s sights
- Most Popular Operating Systems 1999 - 2022
- Our investment and economic outlook, July 2024
- Striking a balance in the new financial year
- The five reasons why the $A is likely to rise further - if recession is avoided
- What super fund members should know when comparing returns
- Insurance inside super has tax advantages
- It’s never too early to start talking about aged care with clients
- Capacity doubts now more common
- Most Gold Medals in Summer Olympic Games (1896-2024)
- SMSF assets reach record levels amid share market rally
- Many Australians have a fear of running out
- How to get into the retirement comfort zone
- NALE bill passed by parliament
- Compliance focus impacts wind-ups
- LRBA interest rates increase for 2025
- Income-free areas set to increase from 1 July
- Most Spoken Languages in the World
- Middle-to-higher incomes boosting SMSF growth
- Investment and economic outlook, May 2024
- Transitioning into retirement: What you should know
- Plan now to take advantage of stage 3 tax cuts
- Deeming freeze a win for Age Pensioners
- Downsizer contributions can be time critical
Article archive
- April - June 2024
- January - March 2024
- October - December 2023
- July - September 2023
- April - June 2023
- January - March 2023
- October - December 2022
- July - September 2022
- April - June 2022
- January - March 2022
- October - December 2021
- July - September 2021
- April - June 2021
- January - March 2021
- October - December 2020
- July - September 2020
- April - June 2020
- January - March 2020
- October - December 2019
- July - September 2019
- April - June 2019
- January - March 2019
- October - December 2018
- July - September 2018
- April - June 2018
- January - March 2018
- October - December 2017
- July - September 2017
- April - June 2017
- January - March 2017
- October - December 2016
- July - September 2016
- April - June 2016
- January - March 2016
- October - December 2015
- July - September 2015
- April - June 2015
- January - March 2015
- October - December 2014
April - June 2017 archive
- ‘Bank-like heists’ make way for new wave of cyber crime
- Give your children a saving and investing edge - for life
- Women still in the dark about finances
- Lessons learnt - often the hard way
- Australian population figures
- ATO poised to ramp up focus on key compliance area
- Benefit payments rise dramatically ahead of July 1 super changes
- There's no magic pudding when it comes to super
- ATO guidance provides clarity on death benefit confusion
- Beyond super: Our other personal investment market
- The three core pillars of this year's budget
- Federal Budget - 2017-18 - Overview
- Federal Budget - 2017-18 - Budget documents
- Global economy synchronised and thriving
- Life's financial turning points: good and not-so-good
- 2011 Census - what was the make up of your area?
- ATO set to release guidance targeted for SMSF clients
- More withdrawals from 'the bank of mum and dad'
- Tax headache relief: Here’s more help with pension assets changes
- Most Aussies shun super advice
- Australia in a nutshell
- ATO finalises guidance on transfer balance cap
- Fit for purpose? The super story so far...
- SMSFs urged to review segregation clauses in trust deed
- Big insto addresses CGT misconceptions
- Dollar-cost averaging for millennial investors