Who pays for Dixon failures?

Dixon-Advisory/

20 January 2022
| By Laura Dew |
image
image image
expand image

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.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

The succession dilemma is more than just a matter of commitments.This isn’t simply about younger vs. older advisers. It’...

1 week 3 days ago

Significant ethical issues there. If a relationship is in the process of breaking down then both parties are likely to b...

1 month ago

It's not licensees not putting them on, it's small businesses (that are licensed) that cannot afford to put them on. The...

1 month 1 week ago

AMP has settled on two court proceedings: one class action which affected superannuation members and a second regarding insurer policies. ...

2 days 18 hours ago

ASIC has released the results of the latest adviser exam, with August’s pass mark improving on the sitting from a year ago. ...

1 week 5 days ago

The inquiry into the collapse of Dixon Advisory and broader wealth management companies by the Senate economics references committee will not be re-adopted. ...

2 weeks 5 days ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Powered by MOMENTUM MEDIA
moneymanagement logo