The ATO has confirmed it will be contacting SMSF trustees that are yet to lodge their annual returns.
In an update on its website, the regulator said it would send letters to funds with SMSF annual returns (SAR) still outstanding and warned non-lodgement and failure to respond could result in penalties.
“If you are having or have had difficulties preparing and lodging your SAR, we encourage you to contact us now and we’ll help you get back on track,” the ATO said.
It noted the first round of letters to trustees would advise which lodgement years were outstanding and the actions that needed to be taken on behalf of the fund.
“If we do not receive a response to the initial letter within the specified time frame, we will send a second letter warning of consequences for the fund and its trustees,” it added.
It pointed out the consequences of failing to lodge SARs could include failure-to-lodge penalties for each overdue year and raising a default assessment for each overdue year, with penalties.
Trustees could also be issued a notice of non-compliance or face disqualification, it said.
“If we do not receive a response to the second letter, we will follow up with a third letter asking the recipient to ‘show cause’ as to why we should not apply the previously advised penalties and courses of action,” it noted.
“Non-lodgement behaviour is an indicator that there may be other contraventions by the fund.”
It also highlighted ATO assistant commissioner Justin Micale’s recent remarks during the SMSF Association National Conference 2021, reiterating the ATO would “continue to monitor and pay close attention to behaviours of a small number of participants that undermine the integrity of the sector”.
In a separate update on its website, the ATO listed education direction, civil and criminal penalties and freezing an SMSF’s assets as some of the courses of action available to the regulator when dealing with trustees failing to comply with superannuation laws.
“Our main focus is encouraging SMSF trustees to comply with the super laws, but there are occasions when stronger responses are warranted,” it stated.
Last week, the regulator said a failure to include bank account and auditor details were two of the most common errors made when lodging an SAR.
