I was recently visited by the ATO.
They are contacting auditors to ensure a greater level of adherence to regulatory standards by trustees.
If the ATO SMSF audit focus 5 years ago was on compliance, now it is very much on auditing standards. In other words, making sure we auditors have all the correct paperwork, properly signed and on file.
These include:
1. A signed current year engagement letter and representation letter from trustees
2. Signed year end financials before the audit starts
3. Correct signed copies of the
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- Trustee deed
- ATO Trustee declarations
- Investment strategy
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4. Evidence that trustees own the assets in the fund.
The ATO is continuing to focus on compliance with Regulation 8.02b of SISR. On asset valuations, looking to trustees to provide evidence of objective data for updated valuations of assets at market rates.
This is now an expectation.
To help your trustees out here is a link to the relevant ATO guidance.
Much of this is already happening. Though trustees might kick back against the annual valuations, the reality is that it is a legal requirement.
And with Div 296 coming into effect within the next months, focus on asset valuations will become red hot. The government will be keen on the extra tax.
As always if you have any questions please just call and we can work through them.