A statement was released earlier this month which alludes to the Australian Taxation Office (ATO) being dissatisfied with the level of compliance by employers in relation to Superannuation Guarantee obligations, despite more than $85 billion being paid in superannuation each year. It is no secret that this is on the agenda for the ATO, which could inevitably lead to a rise in SMSF audit activity.
ATO Deputy Commissioner James O’Halloran noted that in 2015-16 the ATO undertook around 21,000 cases that addressed Superannuation Guarantee non-compliance, raising $670 million, including penalties, from a range of reviews and audits.
The ATO undertakes a range of compliance activities to detect and deal with non-compliance, one measure is the utilisation of data matching from third party referrals.
“The information released by the ATO confirms our predictions made more than 12 months ago. The natural progression is for an increase in audit activity in this area, which we are starting to see through claims activity of Audit Shield participants” said Rod Spicer, General Manager of Claims and Underwriting at Accountancy Insurance.
To learn more about how increasing audit activity could affect your accounting firm or your clients, contact the Accountancy Insurance team on 1300 650 758 or visit www.accountancyinsurance.com.au.