ATO continuing lodgement crackdown

 

One industry lawyer has warned the ATO appears “very keen” to crack down on SMSFs lodging their annual returns late, with failure to lodge being “a very good early indicator” of underlying issues in the fund.

 

In general, common and persistent issues that trigger ATO penalties are late lodgements of an SMSF’s annual return, according to Michael Hallinan, special counsel for superannuation at Townsends Business & Corporate Lawyers.

As the ATO has flagged on multiple occasions in the past and in spite of the overwhelming majority of trustees abiding by prescribed deadlines, Mr Hallinan believes the regulator remains intent on increasing on-time lodgements.

“If a fund doesn’t lodge on time, there’s [often] a real issue preventing timely lodgement, or there’s some deep problem with the trustees,” he told SMSF Adviser. 

He also noted that under the ATO’s penalty regime, which came into effect in July 2014, the ATO can issue financial penalties for breaches of such obligations.

More broadly speaking, Mr Hallinan also noted the ATO appears keen to continue with using enforceable undertakings to deal with some minor non-compliance issues with taxpayers.

“At the moment they’re keen to ensure compliance by use of enforceable undertakings, which essentially the delinquent taxpayer undertakes to achieve certain outcomes,” Mr Hallinan said.

“I think from the ATO’s point of view, it’s an easy way of dealing with trustees [with] minor infractions as it were, as against major issues,” he said.

“This can involve an offer to undertake education directions and so forth."

 

Written by Katarina Taurian
​Thursday, 07 April 2016
SMSFadviser.com.au

 

Any advice contained in this website is of a general nature only and does not take into account your circumstances or needs. You must decide if this information is suitable to your personal situation or seek advice.

Rolanda has been my financial adviser for 20 years. I have always found her to be highly intelligent, knowledgeable and professional in her career. Rolanda is accessible at all times and patiently explains terms that I do not fully understand. I can highly recommend Rolanda and it is a pleasure to do so. I do this with the utmost confidence. Marcia Montgomery (Retiree – home duties and ex-clerk with Water Board)
I retired Oct 2012, and seeking Financial Advice for my retirement funds, I decided to have Rolanda look after my financial affairs, and so happy I did. Since my retirement I am extremely comfortable with Rolanda’s advice, experience and strategies and the returns on my investments. Rolanda is my "Breath of Fresh Air" at this stage of my life and she makes herself available 24/7 should you need to talk with her. Steve Hoad (Ground Engineer, Qantas)
In 1997 I left Energy Australia and decided to join Rolanda Adams Financial Services for the financial support and advice that I would need into the future. That decision has proved a very good one and I am still with Rolanda who has given me advice and friendship over those many years. The advice given has ensured that my investments have been protected and the major losses, of some, during the GFC was not felt by me unduly. Rolanda and her team are very easy to contact at any time and one is always received in a most professional manner. I would be most happy to recommend Rolanda Adams Financial Services to all who need financial services. Graham Fleeton (Manager, Property Insurance Group Energy Australia (Ausgrid))
Rolanda has been my Adviser for the past 18 years. Through her wide industry experience and professional expertise she has ensured the sound development and ongoing management of my investments. Her advice has invariably been sound, timely and entirely tuned to meet my personal needs in retirement. She has a friendly, engaging manner and is always readily available to address any of my concerns. I have no hesitation in recommending her. Neil O'Keeffe (Chief Inspector (retired), Australian Customs Service)

© 2020 Rolanda Adams Financial Services Pty Ltd. All rights reserved. Site by PlannerWeb.