The number of fraudulent self-managed superannuation funds (SMSFs) is rising, according to the Australian Taxation Office (ATO).
The tax office said perpetrators were using tax professionals to register fraudulent SMSFs by setting up fraudulent funds to access and steal victims’ superannuation.
It was their hope of perpetrators that using the services of registered tax agents and super professionals to register fake funds would “help them avoid detection”.
The ATO recommended people protected themselves from unwittingly registering fraudulent funds by verifying client identities when registering ABNs or TFNs and being cautious when accepting new business with new entities.
This was especially the case if the transaction was online, calls were received at random or a tax professional was asked to prepare forms for a bulk list of new clients.
A recent NSW Supreme Court decision is an important reminder that while super funds may be subject to restrictive superannuation and tax laws, in essence they are still a trust and subject to equitable and common law claims, says a legal expert.
New research from the University of Adelaide has found SMSFs outperformed APRA funds by more than 4 per cent in 2021–22.
The SMSF Association has made a number of policy recommendations for the superannuation sector in its pre-budget submission to the government.
ASIC has sentenced former director Mudasir Mohammed Naseeruddin over four years imprisonment for ‘egregious conduct’ and dishonestly obtaining client funds from six investors’ SMSF accounts.
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