One prominent mid-tier firm has seen evidence in the market that the ATO and ASIC are now taking a real-time approach to shadow shopping, which significantly enhances their surveillance capabilities and reaction times.
BDO’s national leader for superannuation, Shirley Schaefer, has seen evidence of the ATO and ASIC sharing data as transactions occur, upping the ability to detect and capture non-compliance.
Specifically, and as previously reported, the regulators are monitoring accountants providing what is now considered unlicensed advice.
BDO told SMSF Adviser it witnessed a situation in which an accounting firm helped a client set up an SMSF. Twenty-four hours after registering the fund with the ATO, the accountants received a phone call from ASIC requesting copies of the fact find and statement of advice that are required if advising a client to establish an SMSF.
While this episode was an ‘execution only’ piece of work for the client, it is a clear example of the real-time approach the regulators are taking.
BDO reminded accounting firms they should ensure that if they do ‘execution only’ set-ups of SMSFs that they have it clearly documented, with the client outlining the scope of work undertaken.
“Accountants need to be really careful when talking to clients about super and SMSFs. For example, telling clients what the contribution limits are is okay, but unless the accountant is licensed, you cannot tell clients that they ‘should’ make a contribution,” Ms Schaeffer said.
SUBSCRIBE TO THE SMSF ADVISER BULLETIN
- 21 Aug 2016Risks flagged with real estate appraisal valuesBy Miranda Brownlee
- 21 Aug 2016Lawyer challenges ATO view on two fund strategiesBy Miranda Brownlee
- 18 Aug 2017ATO locks in details, addresses panic on real-time reportingBy Katarina Taurian
- 18 Aug 2017Data feeds unreliable for new reporting, says mid-tierBy Miranda Brownlee
- 18 Aug 2017Tax component confusion spurs potential tax liabilitiesBy Miranda Brownlee
- 18 Aug 2017Contributions triple in June quarter, survey showsBy Staff Reporter
- view all
- ATO locks in details, addresses panic on real-time reporting
The tax office has addressed several points of confusion with the new events-based reporting regime, locked in key deadlines, and outlined w...read more
- Data feeds unreliable for new reporting, says mid-tier
With an estimated 20 per cent of SMSFs still encountering errors from data feeds, one mid-tier firm believes the ATO should allow SMSF pract...read more
- view all