ATO encourages trustees to use voluntary disclosure service
The ATO is encouraging SMSF trustees to use its voluntary disclosure service to inform it early if a contravention has occurred.
.
The regulator said managing a self-managed super fund requires trustees to meet certain obligations, which, if overlooked, can result in penalties, so it is important for the Australian Taxation Office (ATO) to know as soon as possible of any issues or mistakes that may have occurred.
It added that each year, an approved auditor must audit the fund, and they are required to inform the ATO about any contraventions that may have taken place. However, it warned that if a contravention occurs, some trustees may not be aware of it for months after.
The ATO said it is in these instances that the SMSF early engagement and voluntary disclosure service can provide support. It can be used at any time to let the regulator know about a contravention that may have occurred rather than waiting for an auditor to notify it after the financial year has ended.
Before using this service, trustees need to develop a plan to rectify the contravention, and it is advised that it is best to speak to an SMSF professional to help with this requirement.
To lodge a voluntary disclosure, trustees must:
- Complete and sign the SMSF regulatory contravention disclosure form.
- Provide all relevant facts and documentation in relation to the contravention.
- Include a plan to rectify the contravention as soon as possible.
A tax professional can lodge the form on behalf of a trustee or lodge it on their own behalf using the Online services for business.
The ATO will take voluntary disclosure into account when determining what actions it will take regarding any contraventions reported by an approved auditor.
Keeli Cambourne
August 23 2024
smsfadviser.com
Hot Issues
- ATO reviewing all new SMSF registrations to stop illegal early access
- Compliance documents crucial for SMSFs
- Investment and economic outlook, October 2024
- Leaving super to an estate makes more tax sense, says expert
- Be clear on TBA pension impact
- Caregiving can have a retirement sting
- The biggest assets growth areas for SMSFs
- 20 Years of Silicon Valley Trends: 2004 - 2024 Insights
- Investment and economic outlook, September 2024
- Economic slowdown drives mixed reporting season
- ATO stats show continued growth in SMSF sector
- What are the government’s intentions with negative gearing?
- A new day for Federal Reserve policy
- Age pension fails to meet retirement needs
- ASIC extends reportable situations relief and personal advice record-keeping requirements
- The Leaders Who Refused to Step Down 1939 - 2024
- 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
- Treasurer unveils design details for payday super
- Government releases details on luxury car tax changes
- 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
