Take action on valuations now to avoid delays, says ATO

The ATO is urging SMSFs to get their asset valuations done before their annual audit to help avoid delays and late lodgements.

 

In an online update, the ATO reminded trustees that one of their many responsibilities when managing their SMSF is valuing their fund’s assets at market value.

“This must be done every income year, so we know your SMSF has complied with super laws,” the Tax Office stated.

“Each year, your asset valuations will be reviewed by your approved SMSF auditor as part of the annual audit prior to lodgment of your SAR. Your auditor will check that assets have been valued correctly, and assess and document whether the basis for the valuation is appropriate given the nature of the asset. They are not responsible for valuing fund assets.”

The ATO told trustees to get their valuations done before they go to the auditor as this will streamline the process and avoid delays.

“It’s your responsibility to provide objective and supportable evidence to your auditor for the valuation of the fund’s assets. This includes all relevant documents requested by your auditor,” it said.

“Failure to do so could result in a delay in auditing the fund and potential late lodgment of your annual return. It could also result in a contravention if the auditor believes mistakes have been made.”

The ATO said trustees should start researching now to find who can value their assets and what type of evidence they need to support the valuation as this can take time.

“In some instances, the law requires valuations to be undertaken by a qualified, independent valuer.”

 

 

 

Miranda Brownlee
21 September 2022
smsfadviser.com

 

 

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Sofie Korac is an Authorised Representative (No. 400164) of Prudentia Financial Planning Pty Ltd, AFSL 544118 and a member of the Association of Financial Advisers.

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