The ATO is encouraging trustees of Self-Managed Superannuation Funds [SMSFs] that have contravened the SIS provisions to disclose them to the ATO via its ‘SMSF early engagement and voluntary disclosure service’, which may mean the ATO will apply a ‘lighter touch’….
If an approved SMSF auditor identifies any contraventions when auditing a fund, they may be required to report them to the ATO via the Auditor/actuary contravention report…
When contraventions have occurred, the trustees should then work with their appointed SMSF professionals (including the SMSF auditor) to rectify them as soon as possible.
The ATO encourages the trustees to voluntarily disclose any regulatory contraventions that remain unrectified.
This can be done via the ATO’s SMSF early engagement and voluntary disclosure service which provides a single entry point for SMSF trustees and professionals to engage early with the ATO in relation to unrectified contraventions.
If unrectified contraventions are voluntarily disclosed before the ATO commences an audit, that disclosure will be taken into account in determining the enforcement action the ATO takes, and the appropriate level of remission of administrative penalties.
The ATO must be provided with all relevant facts, supporting documentations and a rectification proposal, or proposed Enforceable undertaking, and actively engage with the ATO.
Also, if a disclosure is made about contraventions that occurred in previous years, the trustees must lodge any outstanding SMSF annual returns.
A voluntary disclosure can be made by completing the SMSF regulatory contravention disclosure form.
Who can use the Service?
SMSF trustees, SMSF auditors and SMSF professional can use the ATO’s Early engagement and voluntary disclosure service.
If you would like any further information regarding the above or would like to discuss your circumstances, please do not hesitate to contact Craig Hailston at our office  4655 7711.