The SMSF Professionals’ Association of Australia (SPAA) has warned SMSF trustees will be facing increased compliance scrutiny, following an industry briefing from the Australian Taxation Office (ATO) earlier this week.
In a ‘Compliance in Focus’ briefing on Monday, the ATO announced its intentions to increase audits of SMSF trustees in the 2013/2014 financial year for both their regulatory and income tax compliance, according to SPAA.
The ATO expects to audit 1,100 funds for income tax compliance and 15,100 funds for regulatory compliance. There will be a specific focus on prohibited loans, related party transactions, SMSF return lodgement and funds with a history of non-compliance
SPAA’s senior manager for technical and policy, Jordan George, said it is “critical” trustees are aware of the increased levels of scrutiny and should ensure they are receiving appropriate professional advice.
“Being made non-complying can severely damage trustees’ retirement plans as their fund loses its superannuation tax concessions,” Mr George added.
However, Mr George also indicated that the ATO has reported 98 per cent of SMSFs were compliant in the 2012/2013 financial year, affirming the results of the Cooper Review in 2010.
“The SMSF sector is a healthy, compliant and well-functioning sector of the superannuation industry,” Mr George said.
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