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Jan Mohammed

Apr 11, 2023

One trustee refuses to sign

in SMSF Technical Forum

I have a new client who has come to me to prepare and lodge 4 years of SMSF returns. The husband and wife are in the process of a nasty divorce. The husband has provided all details and I have prepared financials and returns form 2018 to 2022.

The wife will not agree to anything and refuses to sign. She has been advised that she is equally responsible as a Trustee. In the mean time the ATO keeps sending non-lodgment letters threatening fines and disqualification. The husband is keen to lodge.

What are the options in this case? Can we lodge with just one signature and put in an ACR for refusal of the other trustee to sign?

What are the options for the auditor? I have spoken to ATO but they were not very helpful.

5 comments

Comments (5)

Apr 12, 2023

I had this once and there were disputes over the treatment of funds and who loaned what to where under Section 65, I was the accountant in fact now that I think about it. As one of the Trustees was hostile I ended up ceasing the engagement as I was not going to be able to work with them on this.

I think you could finish this audit qualifying under 35B and maybe Part A given the finanicals could be impacted as aresult of the breach, subseuqent fines and being made non comlying?

We are only auditing a set of financials to give an opinion on them are we not? If only one trustee is willing to sign you can ask for both to sign (maybe in writing directly to the non complying party) then after 14 days qualify under this and generally not signing and thats the audit opinion. If the person who did not sign wants to go to court you just say this is what I was presented, I sought signed paperwork, I did not hear back.