The ATO has recommended auditors check if their SMSF auditor number (SAN) has been misused after noting few had done so after it stopped sending out lists of funds that used their details on their annual return.
In an update on its website, the regulator stated it had stopped the yearly mailouts in 2023 and shifted to a system where auditors could request a list from the ATO if they were concerned about SAN misuse.
“Auditors can request the list through Online services for business (OSB). The list will show funds that reported the auditor’s SAN where we could not find a matching auditor completion advice (ACA),” it said.
“This financial year, only 21 auditors have requested a list of SMSFs reporting their SAN.
“By checking the responses to these lists and matching ACAs with SMSF annual returns, we found 13 cases of SAN misuse involving 11 tax agents and 79 SMSFs.
“Of these, six were deliberate instances of SAN misuse and seven were inadvertent misuse.”
The ATO encouraged auditors to lodge an ACA through OSB after they finalised a review of an SMSF to identify potential SAN misuse and that deliberate wrongdoing by a tax agent was referred onto the Tax Practitioners Board for possible sanctions.
In separate news, the ATO reminded trustees once again to be vigilant about SMSF schemes used for illegal purposes and safeguard their funds.
The regulator stated it was still seeing individuals being targeted by promoters to create an SMSF for inappropriate and illegal reasons that often promised high returns or early access to superannuation.
Trustees were urged to report any suspicious activities that may involve illegal tax or superannuation schemes and protect themselves by doing their own research before investing.
“Don’t rush to make a quick decision. Check the Australian Securities and Investments Commission’s financial advisers register to make sure your adviser is licensed … and confirm their registration,” the ATO added.
It also reminded trustees to request copies of all documents, such as investment plans, and read them before signing, and consider how any schemes or arrangements might affect their SMSF and whether they violated tax and super laws.