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According to the SMSF Association, the ATO sees an increasing number of corporate trustees being deregistered due to late payment of ASIC’s annual review fees.
Speaking at the SMSF Association National Conference last week, SMSF Association Deputy Chief Executive Officer Peter Burgess emphasized the importance of the SMSF paying its annual ASIC examination fees on time.
“The ATO is facing a growing number of companies being deregistered for late payment of ASIC annual dues,” he warned.
“We don’t want our clients to get caught up in this because it’s a world of pain to fix it.”
Burgess explained that if the company were deregistered for failing to pay ASIC’s annual dues, the fund’s assets would go to the Commonwealth.
Funds held in the Fund’s bank account must also be submitted to ASIC’s unclaimed funds account by the Fund’s financial institution. The trustee must then make a claim for money or property directly to ASIC.
“We are seeing more cases like this at the SMSF. It’s important,” he warned.
“You don’t want to get caught up in this mess.”
He added that SMSF clients also need to ensure their details are up to date to avoid notifications being sent to the wrong address.
In a release issued last year, the ATO said most deregistrations initiated by ASIC were the result of annual review notices being overlooked because individuals’ address details were not up to date.
The ATO has warned trustees that the process of reinstating corporate trustees can be time consuming, expensive and complex to resolve.
“Former directors must apply to ASIC for reinstatement as corporate trustees. Funds paid to ASIC must also be claimed and paid to SMSF,” the ATO said.
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