The ATO is encouraging SMSF trustees to use its voluntary disclosure service to inform it early if a contravention has occurred.
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The regulator said managing a self-managed super fund requires trustees to meet certain obligations, which, if overlooked, can result in penalties, so it is important for the Australian Taxation Office (ATO) to know as soon as possible of any issues or mistakes that may have occurred.
It added that each year, an approved auditor must audit the fund, and they are required to inform the ATO about any contraventions that may have taken place. However, it warned that if a contravention occurs, some trustees may not be aware of it for months after.
The ATO said it is in these instances that the SMSF early engagement and voluntary disclosure service can provide support. It can be used at any time to let the regulator know about a contravention that may have occurred rather than waiting for an auditor to notify it after the financial year has ended.
Before using this service, trustees need to develop a plan to rectify the contravention, and it is advised that it is best to speak to an SMSF professional to help with this requirement.
To lodge a voluntary disclosure, trustees must:
- Complete and sign the SMSF regulatory contravention disclosure form.
- Provide all relevant facts and documentation in relation to the contravention.
- Include a plan to rectify the contravention as soon as possible.
A tax professional can lodge the form on behalf of a trustee or lodge it on their own behalf using the Online services for business.
The ATO will take voluntary disclosure into account when determining what actions it will take regarding any contraventions reported by an approved auditor.
Keeli Cambourne
August 23 2024
smsfadviser.com
