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Matt Little

Apr 06, 2023

Same Tax Agent & Auditor

in SMSF Technical Forum

I am completing an audit of a Fund for the first time and can see that for many years the previous (now retired) tax agent was also the same person who signed off the audit.

Is this something that I should raise in 'Section G: Other Regulatory Information' of the ACR?

Thanks

1 comment

Comments (1)

THE AUDITORS INSTITUTE

Apr 06, 2023

Hi Matt

The independence rules did recently change (from 1/7/2021) so possibly some or all of the returns / audits that you refer to were done when arguably a tax agent and an auditor could be the same person.

In my view it is not an issue for the Fund but a possible issue for the auditor so my view would be to not raise it in section G of the ACR.

The guidelines for the ACR re section G states that:

"We also encourage you to report contraventions and other information that you think will help us perform our function as the regulator of SMSFs at Section G of the form. To decide if you should report contraventions and other important facts, even if they do not meet any of the tests, apply both:

the auditing and assurance standards
your professional judgment.

Before you complete this section, consider if you consent (under paragraph 14ZZW(2)(e) of the Taxation Administration Act 1953 for the purposes of the tax whistleblower legislation), to disclosing to the Commissioner of Taxation your identity (if required) when using this information in administering any taxation laws.

To keep your identity confidential, make a disclosure by completing the tip-off form. Alternatively, find the form in the Contact us section of the ATO app or phone in your tip-off on 1800 060 062."

Arguably the ATO is aware that the tax agent and the auditor is the same by the annual return disclosing this.

If other members have a view on this issue please let the forum know.

Thanks

SMSF AAA