SMSF Auditors Being Closely Watched by ATO
The mandatory reporting regime where Auditors must make Contravention Reports to the ATO where non-compliant funds are found has resulted in thousands of Contravention Reports being lodged in Calendar 2013. Trustees are well advised to retain the services of up to date competent professional advisers.
SMSF Auditors Required to Lodge Annual Registration Renewal with ASIC
From 31 January 2014, all approved and suspended SMSF auditors will be required to lodge an SMSF auditor annual statement.
The SMSF auditor annual statement verifies that an SMSF auditor continues to meet the conditions of their registration.
The measure seems unimportant to SMSF trustees at first glance as it does not directly effect them. However it shows the Government is serious about ensuring SMSF Audits are undertaken properly and that problems with SMSF’s such as trustee s accessing benefits early or using assets of the SMSF for personal benefit are reported by the Registered Auditors.
The increased reporting and supervision of SMSF Auditors has resulted in approximately 50% of SMSF Auditors discontinuing this work.
The mandatory reporting regime where Auditors must make Contravention Reports to the ATO where non-compliant funds are found has resulted in thousands of Contravention Reports being lodged in Calendar 2013.
These mandatory reporting obligations of SMSF Auditors also have some teeth – with serious penalties for SMSF Auditors who fail in their responsibilities and requirements to report any contraventions, including custodial sentences!
Nevertheless, SMSF’s remain a highly effective way of providing for retirement and have estates planning and asset protection benefits.
But although they are more and more in use and more retirees know about them – its still a good idea and can save a lot of money and stress if you get advice from the right people BEFORE making any changes to your SMSF investment approach.