An inaccurate market valuation is now a reportable breach, Super Auditors director Shelley Banton told SMSF Adviser, with the ATO now able to issue a range of penalties for non-compliance in light of the new penalty regime.
“If you have any funds that were breached in 2013, you’ll need to make sure they now fully comply, as they could be at further risk under the ATO’s new powers,” Ms Banton said.
“These new penalties strengthen the regulations introduced in August 2012 stating that all SMSFs needed to value fund assets at market value when preparing the fund’s accounts and statements for the 2013 financial year onwards.”
Ms Banton said difficult assets to get valuations for include commercial property, which reiterates the importance of trustees seeking the guidance of a qualified and independent valuer.
“There’s a lot of confusion out there from accountants as to what is actually required with market values,” Ms Banton said. “It just comes back to education and time in terms of getting the trustees up to speed to ensure that the appropriate evidence is provided.”