ATO data reveals 250 trustee disqualifications for 2021–22
Eighty SMSF trustees were disqualified in the June quarter, according to recent ATO figures.
In a recent update of its Trustee Disqualification Register, the ATO has indicated that a total of 250 SMSF trustees were disqualified in the 2021–22 income year.
This is an increase of around 27 per cent from the previous 2020–21 income year when 197 trustees were disqualified.
The Trustee Disqualification Register is a record of all individuals that have been disqualified from being an SMSF trustee since 2012.
Under super law, the ATO will look to disqualify individuals from being an SMSF trustee or director of a corporate trustee where they have contravened the rules and disqualification is the appropriate action taking into account the number, nature, and and seriousness of the contraventions.
It will also look to disqualify individuals from being an SMSF trustee where it considers that an individual is not a 'fit and proper' person to be a trustee or director of the corporate trustee, having regard to their personal character and circumstances.
“We will generally look to disqualify you if we are concerned that allowing you to remain a trustee would present a future compliance risk or risk to retirement savings," the ATO stated previously in July.
“This includes situations where you have shown deliberate and blatant disregard for the super law, the contravention can't be rectified, and you have misused your SMSF to take advantage of the low super tax rates.”
The ATO noted that there may be other reasons why a person is disqualified from being a trustee under the super law, such as where they have been convicted of an offence involving dishonesty or are insolvent under administration.
“Disqualification is a decision we do not take lightly, and only after considering all other enforcement actions,” the ATO noted.
The ATO has also previously encouraged SMSF professionals to check the disqualified trustee register when verifying new trustees and make periodic checks on their exiting clients.
Miranda Brownlee
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 also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.
