ATO contributes to negativity on SMSFs
Both the Australian Taxation Office (ATO) and other sectors of the superannuation industry have been responsible for much of the negative publicity which has impacted self managed superannuation funds (SMSFs), according to the National Institute of Accountants (NIA).
In a submission to the Cooper Review, the NIA claimed the SMSF sector "has been subjected to much conjecture about poor compliance"
"Some of this has originated from other sectors of the superannuation industry and some of it comes from the ATO's own comments on compliance - where it has extrapolated data of non-compliance from targeted activities (targeting suspected non-compliers) with the overall performance of the SMSF sector," the submission said.
However it claimed that a summary of data on SMSF compliance provided by the Cooper Review had shown that the rate of non-compliance is not statistically different from other superannuation sectors.
"While it is important that there is appropriate compliance review procedures by the ATO, particularly in the form of targeted compliance programs, we do not believe the case has been made for an increase in compliance activity," the NIA submission said. "Therefore, while the ATO should be provided with some additional resources to target SMSF compliance, we do not see the need for a large increase in such activities."
The NIA said a number of its members subjected to ATO reviews of SMSFs had complained about the level of training of ATO staff.
"Many of the findings of such reviews have been appealed and on many occasions the tribunals and courts have found the ATO processes wanting and the staff knowledge of this complex area insufficient," the submission said. "It is costly to members to appeal these reviews and where the ATO has been found to be negligent or 'reckless' then there should be compensation to the taxpayer."
"Further, the ATO needs to ensure that its employees who undertake the reviews are both better trained and have a less confrontational and suspicious attitude towards SMSFs," the NIA said. "Members have reported that ATO staff seem excessively zealous in seeking to uncover minor deficiencies. The ATO needs to deal with this issue through better training and better selection of staff who undertake the reviews."
AUTHOR
Mike Taylor
Recommended for you
Unveiling its performance for the calendar year 2024, AMP has noted a “careful” investment in bitcoin futures proved beneficial for its superannuation members.
SuperRatings has shared the median estimated return for balanced superannuation funds for the calendar year 2024, finding the year achieved “strong and consistent positive” returns.
The second tranche of DBFO reforms has received strong support from superannuation funds and insurers, with a new class of advisers aimed to support Australians with their retirement planning.
The financial services technology firm has officially launched its digital advice and education solution for superannuation funds and other industry players.
