ATO ramping up SMSF surveillance
The ATO has increased its surveillance of the SMSF sector and is taking tougher action on SMSF trustees, one lobby group has warned.
Taxpayers Australia manager of superannuation products and services Reece Agland noted the ATO disqualified 585 SMSF trustees in 2014 and disqualified a further four this month for breaching SIS.
Speaking to SMSF Adviser, Mr Agland said the number of disqualifications was less than 100 in 2010.
“It’s a clear indication that the ATO is taking [compliance] seriously and is taking action,” he said.
While Mr Agland said he expects to see a dent in the number of disqualifications this year, he also expects “a major rise in the number of other ATO actions taken” now that it has new penalty powers at hand.
“Early on the ATO were about education for SMSF trustees, they’ve now done enough years of education and it’s time for them to get tough,” said Mr Agland.
“The ATO is going to give trustees less leeway than it did five years ago.”
Of late there has also been more “vigilance” in the courts towards SMSF trustees breaching SIS, Mr Agland said.
Mr Agland said the ATO also has access to a lot more information than they did previously, as well as sophisticated electronic means to find people’s assets and what names they’re in.
This will only increase, he said, when the ATO has completed the process of implementing standard business reporting (SBR).
“With SBR they’ll be able to get real-time data from people’s accounting systems so they’ll get information sooner and be able to act on it a lot quicker,” he said.
Miranda Brownlee is the deputy editor of SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.
Since joining the team in 2014, Miranda has been responsible for breaking some of the biggest superannuation stories in Australia, and has reported extensively on technical strategy and legislative updates. Miranda has also directed SMSF Adviser's print publication for several years.
Miranda also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.