In a broadcast message sent to tax agents on 16 November 2009, the ATO advised that a new approach is being implemented for trustees of self-managed super funds (SMSF) who, despite previous reminders, have still not lodged their SMSF annual income tax returns.
A letter was recently sent directly to these funds and trustees. It outlined what they needed to do and the consequences if they failed to do so, such as the raising of a default assessment including associated penalties.
If tax returns remain unlodged:
- the fund may be made non-complying and issued with a notice of non-compliance
- a default assessment under section 167 of the ITAA 1936 may be raised, and
- failure to lodge on time penalty and other administrative penalties may be applied.
For a copy of the broadcast message, go here