LATEST ACCOUNTING NEWS
Small businesses may ‘collapse under strain of payday super’, IPA warns
ATO’s hands tied with scrapping on-hold debts, expert says
What Drives Your Business Growth and Profits?
Australian Taxation Office (ATO) shifting to firmer debt collection activity
Why employee v contractor comes down to fine print
Sharing economy reporting regime for platform operators
Countries producing the most solar power by gigawatt hours
Illegal access nets $637 million
Accessing superannuation benefits.
Does your business have a company Power of Attorney?
Labor tweaks stage 3 tax cuts to make room for ‘middle Australia’
GrantConnect
2 in 3 SMEs benefit from instant asset write-off, survey reveals
Updated guidance on R&D claims
Do you know how to recover debts?
Wheat Production by Country
Types of small business benchmarks
What is a Commercial Lease?
ATO warns advisers against suspect R&D tax claims
The year of workplace law upheaval
How to Resolve Invoice Payment Disputes
Raft of revenue tweaks in MYEFO to raise millions
The Countries that Export the Most Wine in the World
Quarter 4 October - December 2023
Quarter 3 July - September 2023
Quarter 2 April - June 2023
Quarter 1 January - March 2023
Quarter 4 October - December 2022
Quarter 3 July - September 2022
Quarter 2 April - June 2022
Quarter 1 January - March 2022
Quarter 4 October - December 2021
Quarter 3 July - September 2021
Quarter 2 April - June 2021
Quarter 1 January - March 2021
Quarter 4 October - December 2020
Quarter 3 July - September 2020
Quarter 2 April - June 2020
Quarter 1 January - March 2020
Quarter 4 October - December 2019
Quarter 3 July - September 2019
Quarter 2 April - June 2019
Quarter 1 January - March 2019
Quarter 4 October - December 2018
Quarter 3 July - September 2018
Quarter 2 April - June 2018
Quarter 1 January - March 2018
Quarter 4 October - December 2017
Quarter 3 July - September 2017
Quarter 2 April - June 2017
Quarter 1 January - March 2017
Quarter 4 October - December 2016
Quarter 3 July - September 2016
Quarter 2 April - June 2016
Quarter 1 January - March 2016
Quarter 4 October - December 2015
Quarter 3 July - September 2015
Quarter 2 April - June 2015
Quarter 1 January - March 2015
Quarter 4 October - December 2014
‘Bank-like heists’ make way for new wave of cyber crime
ATO reports on key contraventions for 2016-17
ATO, mid-tiers warn on common expenses myths
SMSF trustees told to take action on contributions
Higher instant asset write-off threshold for small business extended
Australian population figures
New data points to spiralling retirement costs
Personal insolvency numbers spike across Australia
ATO cracking down on taxable fringe benefits
Intangible capital improvements made to a pre-CGT asset
The three core pillars of this year's budget
Federal Budget - 2017-18 - Overview
Does your business import or export goods and services?
Federal Budget - 2017-18 - Budget documents
When does an asset cost less than $20,000? Depreciating assets: composite items
ATO finalises guidance for capped defined income streams
Warning on trap with trust deed updates
2011 Census - what was the make up of your area?
It’s no secret that Australians have some of the largest houses in the world.
Resources on our site to help you and your family.
ATO defends approach to SG compliance
Essential steps for SMSF clients before 30 June
New tax incentives for early stage investors
FBT Reminder – Odometer Reading
ATO on 'aggressive' debt recovery hunt
More ATO downtime looms ahead of tax time
Tax debt release applications refused
Troublesome tax system overhaul picks up speed
Government to ‘put to bed’ uncertainties with TRIS
Travel expense and transport of bulky tools claim denied
New law sheds light on global tax issues
Report tips housing price spikes to wipe out super savings
ATO reports on key contraventions for 2016-17

WATCH OUT FOR THESE - The ATO has identified the most commonly reported contraventions this financial year and flagged concerns over auditors misreporting illegal early release as loans to members.



       


 


ATO assistant commissioner Kasey Macfarlane said there has been a downward trend in the number of auditor contravention reports (ACRs) received in the 2016-17 financial year compared to the same time last financial year.


“There has been around a 10 per cent drop [in 2016-17]. Usually the number of ACRs we receive is around 9,000 to 11,000,” said Ms Macfarlane.


The ATO continues to see the same types of contraventions reported, she said, with loans to members and in house assets still by far the most common.


“They were in the top three for the 2015-16 financial year, and they’ve been in the top three for at least the last five years. So it’s something that’s very common and something SMSF auditors just probably need to be mindful of and look at,” Ms Macfarlane noted.


Ms Macfarlane said the ATO is concerned that some of the contraventions reported to the ATO as loans are in fact illegal early release upon closer inspection.


“So SMSF auditors, when they are looking at monies inappropriately withdrawn from an SMSF, need to [verify] themselves if it is a loan,” she said.


“We’d expect to see evidence and documentation that there was in fact a loan or at least an intention to create a loan, and sometimes when we have a closer look none of that evidence is in place, so that’s just something to be mindful of.”


Among the in-house asset contraventions, the majority of them, she said, relate to investments in related unit trusts, loans to related companies or loans to related unit trusts.


“Where SMSFs have those types of investments, it’s important that SMSF auditors take a close look at those to make sure that’s okay,” she said.


Ms Macfarlane added that a large number of the contraventions reported to the ATO also relate to funds that don’t meet the definition of an SMSF because something has happened in the fund.


“For example, a member may have become bankrupt and they haven’t taken the necessary steps within that six-month period to either restructure the fund or roll the monies out of the SMSF sector,” she explained.


“Overall only 2 per cent of SMSFs each year have ACRs reported to us, and 50 per cent of those, by the time they’re reported to us, they’re reported as rectified, so that is a very pleasing result.”


 


MIRANDA BROWNLEE
26 Jun 2017
www.smsfadviser.com


 




28th-June-2017
 
CPA logo Peter I Price & Associates Pty Ltd
Phone: (07) 3376 3411| Email: info@peterprice.com.au
15 Loffs Road, Mt Ommaney QLD 4074
Liability limited by a scheme approved under Professional Standards Legislation.