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Peter Morris

Apr 06, 2022

Reinstatement of Corporate Trustee by ASIC

in SMSF Technical Forum

The super fund trustee is a company.

The company was deregistered in Feb 2022 for non payment of ASIC fees (documents went to an old address and was not picked up by the directors for next 2 years).

The company is reinstated in April 2022 .

The company has 2020 and 2021 annul returns and financial accounts currently being prepared and will finalise in April – after the Company is reinstated.

So as an auditor – auditing the 2020 and 2021 in April after the trustee has been reinstatement – What is the position on qualifying the audit of 2020 and 2021? The fund had a registered corporate trustee in those years

Would I only be qualifying in 2022?

Phoned ASIC they says that no record once reinstated

What is everyone’s view?

What is the position on qualifying the audit of 2020 and 2021?

Are contraventions required and if so which years?

1 answer0 replies

Comments (1)

THE AUDITORS INSTITUTE

Apr 11, 2022

Hi Peter

You have a SMSF that has a company that was deregistered in February 2022. My view is that would be a breach of SIS in the 2021/22 financial year as that is the year in which the Fund has breached section17A of SIS by not having a trustee in effect for the Fund. That is you would qualify the audit report re the 2021/22 year but not re the 2019/20 or 2020/21 years.

In relation to the ACR my view is that as you are currently doing the 2019/20 & 2020/21 audits you would lodge an ACR re the breach in the 2019/20, 2020/21 & 2021/22 ACR's.

The reason for this is that the ATO requires:

"You must lodge a report within 28 days of completing the audit if, in the normal course of conducting the audit, you form the opinion that a contravention of the SISA or SISR may have occurred, may be occurring or may occur either:

during the year of income being audited
before or after the year of income being audited.

The contravention must meet the reporting criteria."

That is as the breach occurred "after the year of income being audited" you would report it in the ACR for all the years that you are currently doing (2019/20 & 2020/21) and the year that the breach occurred in (2021/22).

I note that the ACR ATO instructions also state that:

"Test 1: Fund definition test

Where the fund fails to meet the definition of an SMSF under section 17A of the SISA, you can report this event in Section E."

If members have a differing view to the above approach that would be great to hear.

Thanks

SMSF AAA