In a statement released last week, the ATO said such tactics are being used to coerce investors to invest in artwork at inflated prices, while promising inflated rental returns on these investments.
The ATO is encouraging trustees to seek an independent opinion when purchasing assets such as artwork to avoid any valuation pitfalls.
“The value of complex asset classes such as artwork and collectibles can be very subjective in nature. There have been concerns raised with the ATO about how some of these assets are being valued in the marketplace,” the ATO stated.
“A valuation of assets is required to confirm your SMSF has complied with relevant super laws. Asset valuation is a key component in preparing meaningful SMSF financial reports and it can have an impact on members' returns.”