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ATO warn of new illegal scheme targeting SMSFs

The ATO have recently alerted taxpayers to a new illegal scheme that is being promoted.

They have found a scheme whereby SMSF trustees have been told that they can:

  1. establish a new SMSF,
  2. then roll over the balance of the old SMSF to the new SMSF, then
  3. liquidate the old SMSF, and hence
  4. avoid paying potential tax liabilities

The ATO have made it clear that this arrangement will likely lead to civil and criminal actions, which would also put your retirement money at risk via penalties.

The ATO do their best in finding and shutting down illegal schemes, however they also ask the public for their assistance in alerting them to these schemes.

They state that if you have been approached by a promotor of such a scheme, either get a second opinion from a registered tax agent, or appropriately qualified financial adviser, and to report the promotor to the ATO.

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