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.