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.
Comments
ABC Radio religiously had Daryl Dixon on every week for years on the Tony Delroy night programme.
It was effectively a promotional segment for Daryl Dixon with the presenter regularly gushing and agreeing over his comments as though Daryl himself could do no wrong and was the almighty guru of everything financial.
Often the presenter’s comments could also be construed as bordering on indirect advice to “encouragement” to say the least.
Perhaps the ABC should think about coughing up some of the funds to help out?
Of course, the effected Dixon clients were also taxpayers so maybe the ABC could return some of their share to assist??
Same could be said of other ABC media commentators in finance, with real gigs with funds management or subscription businesses making buckets. Been going on for 30 years.
Daryl appearing on the Nightlife was my first introduction to Dixon Advisory. However, he wasn't always accurate with his advice I felt and I clearly remember one night he said, "Good night" in his opening greeting! Every time I hear of this business that's the first thing that comes to my mind strangely.
He never appeared again soon after that, but in his place two female representatives filled his role. Then, once Tony left, the Tuesday night segment changed into a more encompassing financial talk.
I don't see why the ABC should have to pay anything as the clients entrusted the advice of Dixon Advisory. Furthermore, as was said on every broadcast, "all advice given is of a general nature and shouldn't be construed as personal advice!"
The clients still have their SMSF's, but they may just have some unpaid taxes. I hope the ATO give such clients a little leniency as a result.
''These financial returns for SMSFs are usually paid monthly, '' what is this referring to? Tax paid? I don't understand what gets paid monthly by an SMSF.
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