COVID-19: no penalties in absence of valuation evidence for SMSF assets

The ATO will not impose penalties if it is satisfied that SMSF trustees find it difficult to obtain the  required valuation evidence for fund assets due to the impacts of COVID-19. 

Auditors should however consider the need to modify Part B of their audit report and lodge an  Auditor/actuary contravention report (ACR), if necessary, during the 2020 and 2021 financial year.  The ACR should include the reasons why the trustee was unable to obtain the appropriate evidence.  Trustees will receive a letter from the ATO advising them to ensure compliance by the next audit, if  possible, as repeated contraventions can lead to penalties.

From CAP TAX News – 22 October 2020 / Edition 41