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I am currently auditing a fund for year 2022.
The fund has only one member and he decided to roll-over fund's assets into another complying fund owned by a family member.
He calculated the tax liability and prepaid it to ATO. He also prepaid accountant's fees and auditor's fees, assuming same charges as per prior year, and closed the fund's bank accounts.
He did not receive any notification from ATO that the fund has been wound up.
He did not use any SuperStream for the roll over, although he confirmed that he was an employee of the family business that made the contributions. The accountant claims that a number of attempts to access Australia Post for the SuperStream failed and other accountants/colleagues encountered the same issue.
What breaches/qualifications should be imposed upon the fund?
Hi WL
There is no requirement to advise the ATO that a SMSF is closing its bank account (that I am aware of).
The ATO would be advised of the wind up by lodging a final annual return that states that the Fund has been wound up.
My view is that there is a breach of Reg 6.17 of SIS re the rollover not being done via Super Stream assuming it was a rollover after 1 October 2021.
Assuming the rollover is a material amount then yes I would qualify Part B of the audit report & lodge an ACR re the breach of Reg 6.17.
If other members have a different view please let the forum know.
Thanks
SMSF AAA