The ATO has announced the next mail-out examining SMSF auditor number (SAN) misuse will start in October and has urged auditors to respond even where no misuse appears to have occurred.
In an update on its website, the regulator stated: “Misused SANs may result in reportable contraventions not being flagged and potential reputational risk from your details being fraudulently used for SMSF audits.”
The ATO asked approved SMSF auditors to follow the steps provide to them via email and respond via its online services for business portal.
“Take the time to review the client list and report SAN misuse,” it said.
“Even where your client lists reveal no misreporting, you should still confirm this with us so we know that the funds in your client list received an audit.
“The mail-out helps us verify funds are being audited and identify instances of SAN details being incorrectly or fraudulently reported on SMSF annual returns.”
It added it would investigate instances of misuse by requesting the tax agent or trustee to rectify any inadvertent misuse, take compliance action against a trustee or refer the tax agent to the Tax Practitioners Board where deliberate misuse was detected.
In a separate update, the ATO reminded SMSFs that are required to lodge a quarterly transfer balance account report (TBAR) that the next report is due on 28 October 2022.
SMSFs that are required to lodge a TBAR by this date are those where a transfer balance account (TBA) event occurred between 1 July and 30 September 2022, and any member of the SMSF has a total super balance greater than $1 million.
Funds that did not have a TBA do not have to lodge, but those that are required to lodge a TBAR should do so through the online services for business portal or via a tax agent.
“Remember, if your SMSF does not lodge a TBAR by the required date, the member’s transfer balance account may be affected,” it said.
“The member may need to commute any amounts in excess of their cap and pay more in excess transfer balance tax.”
