newsilverfan
New Member
Just wondering if one was to buy PM via SMSF, and if some was stored off site, ie non safety deposit box, non bank, how do you prove to ATO your holdings?
PM SMSF ATO Complience
- Thread starter newsilverfan
- Start date
Hi Newsilverfan,
Before you consider the ATO audit, Each year as you know you will need to have your SMSF audited.
The SMSF auditor will need to be satisfied with the existence and valuation of the precious metals held in the SMSF.
If you are making a purchase, the auditor will review the documentation to support the purchase as well as the the purchase (cash) debited from the bank account. For instance, you can use a bullion provider, the purchase should be in the SMSF name.
In relation to storage other than a safety deposit box, store at a provider such as Perth Mint etc who will provide the details required for an auditor to obtain comfort over valuation and existence. Do not store at home....
At year end - 30 June, and you donot use a storage option, an auditor may inspect the gold to verify existence and valuation OR ask for a sworn statutory declaration of the visit by the members/ trustees to the vault including date and time. In this date and age, members will prove the visit with a simple photo with the gold in the valult on the Iphone
All of the above will satisfy external audit (I need to disclose, i'm a auditor) and pass an ATO audit.
Hope that helps and let me know if you need more info.
Cheers, Ivan
Before you consider the ATO audit, Each year as you know you will need to have your SMSF audited.
The SMSF auditor will need to be satisfied with the existence and valuation of the precious metals held in the SMSF.
If you are making a purchase, the auditor will review the documentation to support the purchase as well as the the purchase (cash) debited from the bank account. For instance, you can use a bullion provider, the purchase should be in the SMSF name.
In relation to storage other than a safety deposit box, store at a provider such as Perth Mint etc who will provide the details required for an auditor to obtain comfort over valuation and existence. Do not store at home....
At year end - 30 June, and you donot use a storage option, an auditor may inspect the gold to verify existence and valuation OR ask for a sworn statutory declaration of the visit by the members/ trustees to the vault including date and time. In this date and age, members will prove the visit with a simple photo with the gold in the valult on the Iphone
All of the above will satisfy external audit (I need to disclose, i'm a auditor) and pass an ATO audit. Hope that helps and let me know if you need more info.
Cheers, Ivan
I've been searching through all the other threads trying to find information with regards to this.
Can you expand on what you mean by 'comfort over valuation and existence' please mate? And why one should not store at home. Is there law prohibiting this?
As you also said - "In this date and age, members will prove the visit with a simple photo"
Cheers
Tuatara
Tuatara said:
Hey mate,
Sorry for the slow reply - the point around personal residence I will answer separately and in a little more detail.
Re the other points - let me say, there are say 1000 auditors in Australia, some of them will audit by the letter of the law and the others will use the interpretation in Guidance Statement 009 to use 'commercial judgement' to obtain comfort of valuation and existence.
So do I go an visit all the vaults around Australia to sight the PM's?NO! its just not practical and costly for trustees. Therefore we use alternative procedures to obtain comfort over whether the PMs exist and whether they are valued correctly. This may include a photo, storage certificate.....a reputable provider will be easy. There are a heap of bullion providers out there to search from.
Cheers, Ivan