Who pays for Dixon failures?
Self-managed super funds (SMSFs) working with Dixon Advisory will have establish who pays to complete their tax returns after the firm went into administration.
Dixon Advisory and Superannuation Services (DASS) went into administration yesterday after its directors determined that mounting actual and potential liabilities meant it was likely to become insolvent in the future.
While the firm agreed to facilitate the prompt transfer of DASS clients to a replacement services providers, it still posed a headache for those with outstanding tax returns.
Liam Shorte, SMSF specialist adviser, said a key determinant would be whether the cost for the return to be done by another provider was footed by the SMSF or by DASS.
“These financial returns for SMSFs are usually paid monthly, that may be for 2021 or for multiple years, and Dixon has said they will move them to an alternative but who pays for that?” he said.
“Accountants don’t usually get into this type of trouble so normally they would have the ability to move the whole book of clients elsewhere to another provider before it got to this stage.
“Given how they have been let down by Dixon, clients might be less keen to move to another provider that they recommend.”
He said he had been directing clients with queries to the SMSF Association who had said trustees needed to act promptly to ensure they were able to file their returns by the deadline.
AUTHOR
Laura Dew
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