ATO crackdown on SMSFs
Trustees of a self-managed superannuation fund (SMSF) who allegedly breached the rules relating to their fund have been issued penalties of $30,000 and ordered to pay $32,500 in costs.
The trustees for the Axent Group SMSF faced the Federal Court on October 15, 2007, charged with breaching superannuation legislation by selling a property belonging to the fund and using the proceeds of almost $150,000 to pay a private debt.
The Australian Taxation Office (ATO) alleged that the trustees had accessed assets in the super fund before meeting any conditions of release such as retirement or reaching preservation age.
The action is part of an increased compliance focus on SMSFs by the ATO, which stressed that the purpose of SMSFs is to provide for retirement. Trustees who break the law by accessing their superannuation risk their retirement savings.
The ATO provides a range of educational material to ensure trustees are aware of their roles and responsibilities, which can be accessed on its website.
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