A SMSF member 60 years old , balance about 200K , not apply pension but every couple day or couple week, he/she withdraws about 1K - 3K and then transfer back SF only after few days or few weeks . About 20 transactions in a year like that
Each withdraw amount that under 5% in house asset rule but if count total amount of 20 times withdraw that more than 30K in a Financial Year . Balance Debtor is Zero as at 30/06
Could you please help me your ideas whether meet contravention in this case?
Many thanks
Hi Phuong
My view is you would refer to the breach in your management letter as a starting point. By doing this if you do a following years audit and the breach has reoccurred you are then required to report the breach in the auditor contravention report even if it does not meet the reporting threshold test.
You could also use your professional judgement and decide to report the breaches in the current year in the auditor contravention report.
The ATO has guidelines re reporting of breaches at:
https://www.ato.gov.au/forms-and-instructions/auditor-actuary-contravention-report-instructions/reporting-criteria?anchor=Reportingcriteria1#Reportingcriteria1
Thanks
The Auditors Institute