SMSFs wrongly claiming no-TFN tax offset, says ATO

The ATO has recently identified a number of SMSFs that have incorrectly claimed a no tax file number tax offset in the SMSF annual return.

In an announcement last week to SMSF trustees, the ATO stated it is “highly unlikely” that the members of an SMSF have not provided their TFN.

“Your SMSF can’t claim the no-TFN tax offset if you have the member's TFN,” the ATO stated.

“The no-TFN tax offset is only available if your SMSF meets these conditions: additional tax has been paid (in any of the three previous income years) on concessional contributions because you did not have the member’s TFN [and] the member’s TFN is received in the current income year and the member has given you their TFN within four years of the additional tax being payable.

“So for example, there was a large withdrawal from the account which is a personal payment to a trustee, and that didn’t get picked up in the audit, we’d be concerned about that,” he said.

“If your SMSF has made a correct claim for a no-TFN tax offset you may be entitled to claim a credit for interest on the offset in a later year.”

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