ATO focus on SMSFs
11-Aug-2011 The ATO has released its 'Compliance Program 2011/12' outlining key focus areas attracting its attention for the coming year.They have a range of measures in place to detect and deal with those who evade their obligations, including working across government agencies and the use of overseas networks.
Their key focus areas this year include the cash economy, work related deductions and selfmanaged
superannuation funds (SMSFs).
While the ATO "will continue to work with SMSFs to fix genuine problems", they state they may also take firm action, including making funds non-complying, if they commit serious breaches of the rules.
If a superannuation fund is made 'noncomplying', it will effectively be taxed on the value of its assets at 46.5%, plus their income will also be taxed at 46.5% going forward. This year, the ATO's compliance activity in relation to SMSFs will focus on:
- Newly registered funds, to ensure they have not been established to provide illegal early release of super;
- Funds lodging their first annual return to ensure they are entitled to receive their 'notice of compliance';
- Related-party investments, to ensure they are not contravening the 5% inhouse asset limit or the prohibition of lending to members;
- Exempt current pension income and non-arm's length income;
- Re-reporting of contributions (particularly if the re-reporting results in the member no longer being liable for excess contributions tax).
accounting services
Accounting services second to none.
We ensure that your bookkeeping and
your accounting work together.
myob training
Expert MYOB Training - One on One Solutions customised to your needs.
Start today with MYOB Training 101.
xero training
Expert training in online accounting
software xero. It's based in the cloud
so you can use it anywhere anytime!
contact us today
Comment