ATO urged to include SMSFs in vulnerability regime | Australian Markets

The Australian Taxation Office has been urged to present self-managed superannuation fund (SMSF) trustees with the identical entry to its proposed Vulnerability Framework as odd taxpayers.

Major accounting group Chartered Accountants ANZ (CA-ANZ) has used a submission to the ATO’’s session round its proposed Vulnerability Framework to argue in favour of the inclusion of each SMSF trustees and small business house owners.

As properly, it requires recognition of tax brokers {and professional} advisers.

The ATO opened session round its proposed Vulnerability Framework in June stating that it’s half of its “commitment to supporting people experiencing vulnerability”.

The ATO session paper says that “a person experiencing vulnerability is an individual who faces an increased risk of harm, exploitation, exclusion, or isolation. This can be due to various factors including, but not limited to, social, economic, physical or mental health conditions, disability, age, lack of access to essential services, or other personal circumstances. Those experiencing vulnerability may require additional support and resources to ensure their wellbeing, safety, and ability to fully participate in society”

Responding to the session, CA-ANZ referred to as for “express recognition of tax agents as partners”.

“While the Framework refers to ‘partners’ and ‘non-government partners’, we recommend that it expressly acknowledges the role of tax agents and professional advisers in supporting vulnerable taxpayers,” the CA-ANZ response mentioned.

“Tax agents are often the first point of contact for individuals and small businesses navigating complex tax obligations, and their role in identifying and assisting vulnerable clients should be clearly recognised.”

The response additionally urged a broader definition of weak taxpayers and particularly famous SMSF trustees.

“We recommend that the Framework clarifies that vulnerable taxpayers, includes not only individual taxpayers but also small businesses and self-managed superannuation funds (SMSFs),” it mentioned.

“The Framework should acknowledge that small business owners and SMSF trustees can also experience vulnerabilities and be able to rely on this Framework.”