Odds of SMSFs getting a contravention report are 53 to one

Odds of SMSFs getting a contravention report are 53 to one
Jennifer DukeDecember 17, 2020

The odds of your self managed super fund getting an Auditor Contravention Report (ACR) are just 53 to one, according to information provided by Chris Hocking Strategies.

An ACR is a notice that super law has been contravened in your self managed superannuation fund (SMSF) and that they have been detected and reported to the Australian Tax Office (ATO).

With 11,000 ACRs issued in 2013/2014, Chris Hocking Strategies explains that the ATO has made it obvious that those trustees who identify and actively address the contraventions will be viewed more favourably, with each ACR assessed by the ATO as either low, medium or high risk.

Your accountant or financial adviser should be speaking to the ATO for you in these situations. If you need to speak to the ATO then do so when you have prepared yourself, they suggest.

Low risk: Will be dealt with by a letter or phone call to trustee within eight weeks of the ATO receiving the ACR from the auditor.

Medium risk: A phone call to the trustee is likely to discuss the contraventions.

High risk: The SMSF will likely receive a comprehensive or full audit to look for additional problems.

Jennifer Duke

Jennifer Duke was a property writer at Property Observer
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Smsfs

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