TPB targets 74 tax practitioners for concerning behaviour

The review identified 74 tax practitioners that lodged 2017 and 2018 self-managed superannuation fund (SMSF) annual returns with an incorrect, perhaps fraudulently recorded, SMSF auditor number (SAN), the TPB said on Monday. 

The practitioners, representing 106 funds, had lodged annual returns for the 2017 financial year with an incorrect SAN and failed to satisfactorily respond to inquiries from the Australian Taxation Office, the ATO’s compliance campaign that began last year identified. 

The ATO then referred the matter to the TPB. 

Explaining that SMSFs are an important component of Australia’s taxation and superannuation system, the TPB explained that SMSF auditors play a critical role in ensuring the integrity of the system through annual audits.

These audits must be completed by an approved SMSF auditor before an annual return can be lodged.

“SMSF trustees rely on their superannuation savings to fund their retirement,” TPB chair Ian Klug said. 

He clarified that the Australian government relies on regulators like the TPB, the ATO and tax practitioners to ensure that these funds are properly managed.

“The TPB will be demanding an explanation from all 74 tax practitioners,” Mr Klug said.

“Misconduct or failure to adequately respond to the TPB’s inquiries is a breach of the Code of Professional Conduct and may result in imposition of sanctions including suspension or termination of registration.”