The ATO has reminded trustees they are legally required to appoint an SMSF auditor for their fund before the end of March or face the possibility of a large fine.
In an update on its website, the regulator pointed out trustees were legally required to appoint an approved SMSF auditor no later than 45 days before they would have to lodge their SMSF annual return (SAR).
“For most SMSFs, the final lodgement due date for the 2018/19 SAR is Friday 15 May 2020. If your SAR is due on 15 May, you must engage an auditor by Tuesday 31 March 2020,” it said.
“If you don’t appoint an auditor by this date, you could face severe financial penalties of up to $10,500.”
It added the 15 May SAR lodgement deadline would not apply to SMSFs with a business or postal address in an identified bushfire postcode.
Funds that were non-taxable, or received a refund by latest year lodged and were non-taxable, or would receive a refund in the current year, excluding large/medium taxpayers or funds with an earlier due date, were also not required to meet the 15 May cut-off, it said.
In a separate update, the regulator reminded trustees they would need to receive an SMSF independent auditor’s report (IAR) from their auditor before they signed and lodged their SAR.
“When you sign the trustee’s declaration in the SAR, you confirm you have received the IAR and are aware of any matters it raises. If you sign the return before receiving the IAR, you could face penalties of up to $12,600 for making a false and misleading statement,” it noted.
“The auditor’s report will advise whether your fund breached any super laws and you should rectify any contraventions as soon as possible.”
In November, ATO data revealed over $45 billion in SMSF assets were put at risk as a result of trustees failing to lodge annual returns with the regulator in 2019.
In February, ATO SMSF segment assistant commissioner Dana Fleming stated the regulator would be in contact with 24,000 funds that had never lodged a return, asking why the funds should not be considered non-compliant.
