ATO will now have more powers to impose penalties against trustees of self managed super funds who breach superannuation law
Effective 1 July 2014, the ATO will have new powers that will allow it to apply a wider spectrum of penalties against trustees of SMSFs who contravene superannuation law. Briefly, the ATO will have three new powers available to it. These powers have been introduced to allow the ATO to address non-compliance issues with superannuation law.
The new powers will apply to directors of corporate trustees in the same manner in which they apply to individual trustees. Currently the ATO has a limited capacity to deal with an address contravention of superannuation law. The new penalty powers include graduated penalties that will allow the ATO to provide a measured response to a contravention of superannuation law.
There will be a new penalty regime and new powers. The amount of the penalty will depend on which provision of the Superannuation Industry (Supervision) Act 1993 is contravened.
Importantly, no costs of an administrative penalty can be paid for or reimbursed from the assets of the SMSF.
If you are a Trustee and have any questions or concerns, you should contact your financial adviser and lawyer about the changes.
Trustees of SMSF funds should be aware of these new laws and the penalties.
If you require further information on this area of law, do not hesitate to contact call Anna Zdrilic at Matthews Folbigg on 9635 7966
MatthewsFolbigg Lawyers, Parramatta, are the leading property lawyers in Western Sydney. Our expert team of property lawyers are able to advise on all areas of property law including leasing and strata.
DISCLAIMER: This article is provided to clients and readers for their general information and on a complimentary basis. It contains a brief summary only and should not be relied upon or used as definitive or complete statement of the relevant law.