The ATO has revealed the non-lodgement of SMSF annual returns (SAR) is becoming a wider problem for the sector and is no longer in the main confined to the management of newly established funds.
“Although [SAR] non-lodgement from an illegal early-access perspective is problematic, it is also becoming an increasing problem for us in relation to the larger population of funds in the industry,” ATO acting deputy commissioner Paul Delahunty told delegates at The Tax Institute National Superannuation Conference held in Sydney last week.
Delahunty reiterated SAR lodgement is one of the most fundamental principles of running an SMSF and its importance in providing the regulator with knowledge about a fund’s regulatory and tax obligations and member balances, and provided an insight into the seriousness of the current situation.
“Given that we are past due dates for the 2023 SARs, where are we at with lodgement? Well it’s not a great story and although we’ve always had a portion of the population who failed to lodge in time, the problem does seem to be growing,” he noted.
“For 2023 SARs, we still have over 100,000 funds that are still yet to lodge. So in comparison to the full [SMSF] population of 625,000, it’s a pretty sizable proportion.”
According to Delahunty, the ATO is very worried about one particular cohort with regard to this matter.
“We’re also particularly concerned with the behaviour we’re seeing from tax agents and auditors who have their own SMSFs,” he said.
“The number of outstanding returns for tax agents and auditors is at a higher level than what we would consider as acceptable and this is because we hold professionals to a higher standard when it comes to meeting their tax and regulatory obligations.
“And tax agents and auditors should be aware that a disqualification as an SMSF trustee could have implications on their status as a registered professional.
“And we do refer the outcomes of any disqualifications against tax agents and auditors to the TPB (Tax Practitioners Board) and ASIC (Australian Securities and Investments Commission) for consideration of their registration of those bodies.”
