If it comes to that time of year that you must make sure that your Self-managed superannuation fund’s audit is ready, then most of us would rather crawl in bed and stay there until it is over. But, in real life we can’t just crawl in bed and forget about everything. The best way to handle the SMSF audits is by making sure that you are ready for it. Best to be prepared. Here are some of the documents and stuff that the tax office might be look for:
Your sole purpose test
Self-managed superannuation funds are only entitled for the tax concessions because of the sole purpose test. To follow through with this test, SMSF need to be kept only to provide retirement benefits to their members or their dependents if a member dies before they reach retirement. No other reasons will be allowed by the tax office.
Preparing investments strategy
To prepare investment strategy is one of the most important tasks that the members or trustees have to complete to be able to be audit ready. There isn’t a specific way that you should be able to prepare this strategy, but the tax office will look at the following:
• That no one is getting financial assistance through the self-managed superannuation funds using some of the funds.
• That you do not purposely acquired assets from related parties of the fund or their relatives.
• That you have formally had a lease agreement where it’s needed.visit http://www.afr.com/brand/special_reports/smsf/insurances-the-key-ones-to-hold-inside-an-smsf-20150315-144jvm for more details.
Must be able to show that SMSF assets and personal assets are separate
This is a very important thing that the tax office will look carefully for. You need to have proof that the self-managed superannuation fund’s assets are separate from every trustee. If the assets are not separate from all the trustee’s assets, you are going to be in trouble. This is a very important to make sure that you and the rest of the trustees have this rule obeyed, at every cost.
All your administrative obligations
You and the rest of the trustees of the super-managed superannuation fund must be on time with all your administrative obligations to the SMSF. You need to be really aware of how important this is for the tax offices. This is where you can get easily fines, for not paying all your administrative obligations about the SMSF.
This is also some of the administrative obligations that you need to keep aside for the audits, for incase the tax offices might ask for it.
• Your minutes of all your meetings for the past 10 years. Or from the time you started the SMSF.
• All accounting records, also for the past 10 years of from the time you have started the SMSF.
• The copy of the trust deed.
• Trustee representation letter that you need to have.
Audit time doesn’t have to a time that you rather would run away. All you need to do is make sure that all your financial statement and obligations are up to date and that you have all the paperwork that you will need when you go to your audit for the self-managed superannuation funds.