Self Managed Superannuation Funds Australia - Keep Yours Compliant
Announcement posted by Accru Chartered Accountants 24 Apr 2012
The control and flexibility that SMSFs offer, as well as their tax-planning and estate-planning features and potentially lower costs, make them an attractive superannuation option.
However SMSFs also have their challenges, and the ultimate responsibility for managing them rests with the trustees. New SMSF trustees are required to sign a declaration that acknowledges an understanding of their obligations. If trustees get anything wrong or are not complying with the rules, the ATO has an increasing range of powers and penalties.
ATO now ‘auditing the auditors’
As a trustee, one of your responsibilities is to have your fund audited each year by an approved auditor. The ATO has recently been undertaking audits of approved auditors to ensure that they are fulfilling their duties appropriately. There are now certain contraventions of the legislation that must be reported to the tax office, without auditor discretion. These can take many forms but commonly include:
- Lending money - An SMSF cannot lend money or use funds to help a member financially. According to the ATO, around 25 per cent of the loans they investigate are considered to be early access and not actually a loan.
- Borrowing money — with very limited exception, a SMSF is prohibited from borrowing money.
Read Full Article - Self Managed Superannuation Funds
Article by:
Melissa McCrystal, Accru Rawsons - Chartered Accountants Brisbane
Based in the centre of Brisbane, Accru Rawsons has an enviable reputation for providing clients with timely, professional and cost-effective solutions to their business needs. They provide tax, accounting and business advisory services, as well as advice on financial planning, superannuation, and business sales, mergers or acquisitions.
ATO now ‘auditing the auditors’
As a trustee, one of your responsibilities is to have your fund audited each year by an approved auditor. The ATO has recently been undertaking audits of approved auditors to ensure that they are fulfilling their duties appropriately. There are now certain contraventions of the legislation that must be reported to the tax office, without auditor discretion. These can take many forms but commonly include:
- Lending money - An SMSF cannot lend money or use funds to help a member financially. According to the ATO, around 25 per cent of the loans they investigate are considered to be early access and not actually a loan.
- Borrowing money — with very limited exception, a SMSF is prohibited from borrowing money.
Read Full Article - Self Managed Superannuation Funds
Article by:
Melissa McCrystal, Accru Rawsons - Chartered Accountants Brisbane
Based in the centre of Brisbane, Accru Rawsons has an enviable reputation for providing clients with timely, professional and cost-effective solutions to their business needs. They provide tax, accounting and business advisory services, as well as advice on financial planning, superannuation, and business sales, mergers or acquisitions.