David Busoli, principal of SMSF Alliance, said trustees, wary of phone scams, are not always answering the unknown number that is trying to call them, which could have implications if the call is coming from the regulator.
“When registering a new SMSF with the ATO there is always a chance that the ATO will contact the trustees before completing the fund registration,” he said.
“We are finding that this action is becoming more common and is resulting in an unexpected issue.”
He said although the ATO uses contact details held on MyGov if they try to call a trustee and receive no answer, it will assume the contact details are not current which could impact the registration of new SMSFs.
“The ATO attempts to contact each trustee three times, over a week, and leave a voice message and text message where possible. These messages require a response within 21 days of the first attempt,” he said.
“They reference the fund name and invite the trustee to phone back or to check the ATO’s contact numbers online so that they can be sure that this is not a scam.”
However, he warned that if there has been no contact within the 21 days, the ATO will send a letter advising that the fund has been withdrawn from the registration process and Super Fund Lookup. The trustees then have 60 days to object with the ATO or the matter will be closed.
“Advisers should ensure that trustees are aware of these issues before submitting a new fund application,” he said.
Additionally, advisers should also make their clients aware that the ATO will ask a series of questions when it does make contact to ensure trustees are familiar with the practical contents of the ATO Trustee Declaration that they have signed.
The questions will focus on identifying fund trustees, their intentions regarding fund usage, including potential interest in early release or personal use, the fund’s size post-rollovers, whether professional advice was sought and its cost, trustees’ awareness of annual obligations, and understanding of penalties for regulatory breaches.
“Advisers who ensure their new trustees understand these matters can avoid significant disruption to the registration,” Mr Busoli said.
