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  • SAN misuse and late SAR lodgments

    We've changed the way we detect SMSF auditor number (SAN) misuse.

    We now issue client lists to SMSF auditors of all funds they audited during the most recently completed income year regardless of the income year the audit was for.

    As part of our new strategy, in September 2021, we issued each auditor with a list of SMSFs that lodged an SMSF annual return (SARs) for any income year that reported them as an auditor with an audit completed date between 1 July 2020 to 30 June 2021.

    As a result, we detected more SAN misuse than in previous mailouts with more than a third of instances of SAN misuse relating to SARs that were lodged late.

    Data from the September 2021 mailout shows:

    • auditors reported 1,896 instances of SAN misuse with:
      • 1,230 instances (65%) relating to SARs for the 2020 income year, and
      • 481 instances (25%) relating to SARs for the 2019 income year
    • SAN misuse was connected to 683 tax agents and 24 trustees (self lodgers)
    • 411 of tax agents were connected to one instance of SAN misuse
    • 50 tax agents were connected to more than 5 instances of SAN misuse involving 812 funds.

    We take SAN misuse seriously. Where a tax agent is found to have misreported SANs across multiple funds or multiple years, we may refer them to the Tax Practitioners Board or for criminal prosecution.

    See also

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      Last modified: 11 May 2022QC 69581