Save
Experts give predictions on compliance hit list for 2016
Two compliance experts have given their tips for what they believe will be the big-ticket compliance issues for SMSFs in 2016.
Experts give predictions on compliance hit list for 2016
Two compliance experts have given their tips for what they believe will be the big-ticket compliance issues for SMSFs in 2016.
As the ATO foreshadowed in an announcement last year, Shirley Schaefer, superannuation partner with accounting and advisory network BDO, believes LRBAs will be an increased area of focus in 2016.
In particular, trustees with related-party loans in place should ensure 100 per cent compliance to avoid raising red flags with the regulator.
“Once the 2016 returns start being lodged, they might start data filtering on the LRBA information and doing some data analytics around loan and interest rates at the very least,” she told nestegg.com.au's sister publication SMSF Adviser.
As it was in 2015, pension compliance “is definitely up there” as a target on the ATO’s compliance agenda, said Ms Schaefer.
“The ATO has made no secret of that, they’re very keen on making sure that if you’re going to claim these big deductions for ECPI that you are in fact entitled to them. So that’s big,” she said.
Correct and adequate documentation continues to be a “bug bear” for Cooper Grace Ward partner Scott Hay-Bartlem, particularly when it comes to pensions.
“In not having proper pension documents, there isn’t technically a pension. Also don’t know is it commutable? Is it reversionary?” Mr Hay Bartlem told SMSF Adviser.
“Also, when someone dies, trying to figure out what happens with the death benefit is very difficult if we can’t get our hands on adequate pension documents,” he said.
“If the ATO blowtorch SMSFs like they blowtorch discretionary trusts then getting all those documents right will become one of the really important things from a tax office point of view.”
Related party transactions continue to be a sore point for SMSF trustees and an ongoing area of ATO focus.
“Related party transactions really must be properly documented. It’s too easy to take a short cut.
However if you don’t properly document that your dealings are at arm’s length, you’ve got compliance issues,” he said.
“We’ve had too many cases this year where there’s been disputes which would not have occurred if there was better documentation,” he said.
Tax saving
Why fast-tracking tax cuts won’t stimulate the economy
Treasurer Josh Frydenberg has flagged that previously legislated tax cuts could be moved forward in a bid to help stimulate the Australian economy. ...Read more
Tax saving
Last-minute items to check off before 30 June
With the end of the financial year almost here, an accounting firm has outlined key changes with tax returns this year and flagged some last-minute tax strategies to consider before 30 June. ...Read more
Tax saving
Australia’s richest owe the Tax Office $772m
Australia’s elites and private companies fell $772 million in taxes due to miscalculations and deliberate tax avoidance, the Australian Taxation Office has revealed. ...Read more
Tax saving
Do you have to pay taxes on a trust?
Trusts are usually set up for business, estate planning and investment purposes to separate the legal and beneficial ownership of assets held within the structure. ...Read more
Tax saving
Government rebuffs regional allowance and tax concession reform
A review’s findings into the viability of area tax concessions and payments for regional and remote Australians has had its recommendations shut down by the same government who requested the report...Read more
Tax saving
Penalties for tax fraud in Australia
Public taxes are used to fund government projects in relation to health, defence, infrastructure and many other national and local projects that require public funding. ...Read more
Tax saving
Disaster relief payments receive tax-exempt status
The Australian government has made disaster relief payments to bushfire-affected individuals and businesses tax-exempt while extending tax-free financial support to NSW Rural Fire Service volunteers. ...Read more
Tax saving
Are your franking credits working?
Here’s what you need to know about franking credits and how they work. ...Read more
Tax saving
Why fast-tracking tax cuts won’t stimulate the economy
Treasurer Josh Frydenberg has flagged that previously legislated tax cuts could be moved forward in a bid to help stimulate the Australian economy. ...Read more
Tax saving
Last-minute items to check off before 30 June
With the end of the financial year almost here, an accounting firm has outlined key changes with tax returns this year and flagged some last-minute tax strategies to consider before 30 June. ...Read more
Tax saving
Australia’s richest owe the Tax Office $772m
Australia’s elites and private companies fell $772 million in taxes due to miscalculations and deliberate tax avoidance, the Australian Taxation Office has revealed. ...Read more
Tax saving
Do you have to pay taxes on a trust?
Trusts are usually set up for business, estate planning and investment purposes to separate the legal and beneficial ownership of assets held within the structure. ...Read more
Tax saving
Government rebuffs regional allowance and tax concession reform
A review’s findings into the viability of area tax concessions and payments for regional and remote Australians has had its recommendations shut down by the same government who requested the report...Read more
Tax saving
Penalties for tax fraud in Australia
Public taxes are used to fund government projects in relation to health, defence, infrastructure and many other national and local projects that require public funding. ...Read more
Tax saving
Disaster relief payments receive tax-exempt status
The Australian government has made disaster relief payments to bushfire-affected individuals and businesses tax-exempt while extending tax-free financial support to NSW Rural Fire Service volunteers. ...Read more
Tax saving
Are your franking credits working?
Here’s what you need to know about franking credits and how they work. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
