In addition to the tax consequences, other penalties may apply to trustees for breaches of the SIS legislation. These can range from significant monetary fines to gaol sentences of up to 5 years, depending on the severity of the offence.
The maximum monetary penalty is 2,000 penalty points for individual trustees or 10,000 penalty points for corporate trustees. Each penalty point equates to $110 under section 4AA of the Crimes Act 1914.
This means the maximum monetary penalties are currently:
> $220,000 for individual trustees; or
> $1.1 million for corporate trustees.
A penalty under the SISA can be imposed on the person who contravened the provision as well as any person involved in the contravention.
In all cases, a penalty can only be imposed by a court of law.
The penalty provisions of the SISA are:
- Civil Liability;
- Civil Penalty (the most severe);
- Fault Liability;
- Strict Liability; and
- Two-tier Liability.
CA Financial Services regularly review our client’s SMSFs to ensure they are not in breach of the various laws in relation to superannuation. Contact CA
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