The Tax Office this week published an update to its register of disqualified trustees to include the March 2022 quarter.
According to the Trustee disqualification register, 83 individuals were disqualified from being a trustee during the March quarter. This brings the total number of disqualifications for the 2021-22 financial year to 170.
This represents a 23 per cent increase in disqualifications from the first three quarters of the 2020-21 financial year, when 138 individuals were disqualified.
There were 197 individuals disqualified in total during the 2020-21 financial year.
The ATO stated that it will disqualify an individual from being a trustee or director of a corporate trustee where they don’t comply with the super law, or where the ATO has concerns about their suitability to be a trustee.
“The register is regularly checked by SMSF professionals, including SMSF auditors, to see if an individual has been disqualified by us,” the ATO said.
Last month, the ATO urged auditors to verify all new trustees using the disqualified trustee register and make periodic checks on their existing clients.
“Auditors should also check whether trustees have been disqualified for other reasons such as they are insolvent, under administration, or have been convicted of an offence involving dishonesty,” it stated.
Where a trustee has been disqualified, the ATO said it will also send an email notification to the auditor for the fund.
“The register is regularly checked by SMSF professionals, including SMSF auditors, to see if an individual has been disqualified by us,” the ATO said. LMFAO
I have worked in the SMSF space for many years and was only made aware of the existence of the register recently. I for one wont be checking the register. If the ATO disqualifies a trustees they should advise me. But of course they will raise some BS excuse about privacy. And if the ATO thinks that auditors will check it then they are dreaming.
Time to wake up ATO and develop systems that are actually useful