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a single member fund has effectively transferred member benefits and wound up
the fund in 2023 year . The fund still needs to be audited etc.
is the member /trustee able to personally pay the accounting and audit fees
and claim same?
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Hi Mike,
An example of poor planning by the accountant / trustee! Assuming no tax liability (i.e. 100% pension), then three options:
Request a FY24 tax return be lodged, showing the contribution received and expenses paid. If the bank account has been closed, these transactions can be notional cash transactions.
As suggested by the Institute, adjust the FY23 accounts to reduce the lump sum / rollover amount and reclassify the amount to expenses, particularly if the audit of the destination fund (if any) is incomplete.
Ignore the problem as immaterial and bill the audit fee to the trustee as normal, on the assumption that the member will pay from his or her own pocket. Such a payment is presumably not deductible to the member.
Regards, Rob Bennett
Hi Mike
An option may be to treat the accounting and audit fees paid by the member as a non-concessional contribution. This will depend on the member's age and whether they are impacted by the total superannuation balance cap rules.
I assume there is no cash left in the Fund's bank account to reimburse the member for the accounting and audit fees that they paid.
If benefits have been paid out to the member another option to record the accounting and audit fees in the wind up accounts is to debit the expense (accounting / audit fees) and credit benefits paid.
If the above does not answer your query please let me know.
If other forum members have a view please let the forum know.
Thanks
The Auditors Institute