Are you getting the right professional advice for your Self Managed Super Fund (SMSF)?
The ATO recently announced increasing their audit activity, checking 15,100 self managed super funds for correct regulatory obligations in 2013-14. Getting the correct professional advice for you SMSF is now more important than ever.
The specific items the ATO are focusing on include:
- whether the fund has been established as a genuine superannuation fund
- lodgment obligations
- the use of prohibited loans
- related party transactions
- funds with a history of non-compliance
- incorrect reporting of exempt current pension income, tax losses and non-arm’s length transactions.
As trustee of a SMSF, you need to know that your super fund is making the right investments within the super fund legal framework. Your super fund is entitled to the concessional tax rate of 15%. But, you have to get everything right to keep the concessional tax rate going forward.
New Penalty Regime
To add to the doom and gloom, the new penalty regime applies from 1 July 2013. The new regime gives the ATO the power to issue administrative penalties, rectification and education directions to individual trustees who contravene SMSF governing rules.
Any penalties imposed to an individual trustee must be paid by the trustee and cannot be reimbursed by the super fund.
The takeaway point here is that if you are unsure if an investment or transaction is right for your SMSF, check with us first! We can provide you with the professional advice to help you make the right decisions for your fund.