SMSF's may have their registrations cancelled - if they have not lodged their annual return and the ATO has no information as to whether they have assets (via a request for a 'Return Not Necessary')

On 26.4.16, the ATO gave notice that it is sending letters to the trustees of SMSF’s which had not lodged annual returns and where the ATO held on information about whether they held any assets. It goes on to say the following.

If your clients receive a letter, advise them that we will cancel their registrations if they have not taken action as stated in the letter, lodged an annual return or applied for a “return not necessary” (RNN).

Applying for an RRN – Your clients may be able to apply for an RNN in writing, or you can submit their request via the Tax Agent Portal. The request must confirm although they are registered they:

have no assets and did not receive contributions or rollovers in their first financial year
have included documentary evidence (such as a bank statement) of the date they first held assets and commenced operating
will be lodging future returns.

SMSF’s may have their registrations cancelled – if they have not lodged their annual return and the ATO has no information as to whether they have assets (via a request for a ‘Return Not Necessary’)

Author: John Morgan