SMSF audit bullshit rant thread

hazy

hazy

Active Member
I know this isn't in the right place because it isn't a for sale thread but it might as well be and it soon might be I'm just ughhhhh put your reading glasses on I'm doing an essay i don't care

so my fund got audited, right. I'm with ESuperfund. over the years they have kept hassling me about these perth mint lunars that I have in the fund, because they are coin-shaped nearly EVERY FUCKING YEAR they have made me write a statement asserting that they are not collectables. Because according to the ATO rules, if they are collectables you have to have insurance, can't have them in your home, whatever whatever whatever. Who cares because they aren't collectables, they are semi-numi bling at best and we all know that and they're a great investment because you might probably still get your premium back over spot if you have to liquidate them etc etc THEY AREN'T COLLECTABLES they're uhhh "special" bullion but they're bullion.

but then i got audited and the auditor says i don't believe you, get a 3rd party appraisal.
so i get all the shit (some coins, mostly bars) out of the vault and haul this heavy shit over to the only place in my city where i can get this done. i had to do it twice because the first time they were closing, at 4pm. I had to take time out of my work day to do this. i know you don't care because you're a fucking libertarian or whatever "hazy is allowed to miss work if she wants" haha ok boomer shutup.

i pay them to appraise the bullion. They frown and say haha yes this isn't the first time I've had to do this and haha yes it's all bullion and yes they value it at spot price. I AM VINDICATED! I should be happy, right?
Except I got a letter from Edlins stating all the items that they saw, and then the fucking auditor goes oh noes according to the holding statement from last year you had a different amount [i sold some d'uh] SHOW ME ALL THE RECEIPTS which is fine because i have them i guess ~

usually i upload each sale receipt against each specific bank deposit in eSuperfund. easy.
except in this case I had to just upload every receipt since the 1st july last year? EASY?! Except i forgot two receipts which is pretty easy to do because let's face it my job is to KEEP THE RECEIPTS not SCAN AND UPLOAD THE RECEIPTS TO SOME ASSHOLE AUDITOR

the asshole auditor also makes a mistake, and the 40oz discrepancy due to my missed invoices turns into a 240oz discrepancy.

the asshole auditor reports me to the ATO whom inform me that they might need to audit my fund which WILL COST ME $12K JUST IN FEES AND MIGHT ALSO RESULT IN CRIMINAL CHARGES.

what the heck. maybe it's all more trouble than it is worth to be honest should i just sell it all and wrap up my fund?... keep the fund and invest in something else (don't say real estate or else I'll hate you forever) if i sell it all back at Edlins I'll be lucky to get spot price.

I don't want to try and sell it here because it's like uhhh 1000oz in various formats? I do not want to perform a hundred transactions.
what should i do
 
I'm kind of glad I wrapped up my SMSF last year.

Every year the hassle of ever-increasing accounting and independent audit fees. ATO increases in levies ... etc. It's just wasn't worth it from a time perspective.
 
Sell all your coins. Buy the ones that your attached to if you must. Then use the money to buy bars. Try and stick to the one brand and size if you can.
 
If I had an SMSF it would be straight kilo bars of silver and ounce blobs of gold. No headaches. Maybe you can wrap up the fund wait a year and start a new one?
 
1,000 oz in Gold? Wow!

That’s a good headache to have!

Hope it all works out for you Hazy!
 
hazy said:
what should i do
Click to expand...

Is this for the FYE21?

I think you're going to have to sort that shitfight out before you even think about selling or winding up your SMSF because you're going to have to lodge a return for FYE22. If it is for FYE21 then you've got until the end of February before it needs to be lodged so you've got time.

The first thing to do is ditch eSuperfund and find another accounting firm. There is not a planet in the Universe that exists where there is an eSuperfund telephone support line that is supportive. Then see if you can get your new accountant to send a grovelling letter to the ATO explaining what has happened and the steps that you'll take to rectify this. Then go from there. You'll have a new auditor, they're all anal and a PITA but at least you'll have one that works with your accountant and for you, not for some shit superfund manager.

And don't stress, they'll sort this out for you.
 
Is there any good funds to sort this bit of a mess out
I am with Esuperfund but have not run into a problem yet, but there is the chance one day it might happen
And i agree with you Shiney,, simply too hard to contact and get support
 
I think you need to relax.
Its not as bad as it appears.
The ATO is an organisation with people, dont forget that.
Unless you have engaged in fraud which only you know you should be fine.
Firstly just get another auditor to get your books right, regardless of whether your currently compliant or not
Take out insurance for any collectables.
Then call the ATO and explain your situation to them, dont get angry you are speaking to a person at the other end of the phone.
I can recount a number of examples from other people that were far worse than your situation.
You cant buy any coins your attached to as you need to keep all transactions at arms length, you have enough headaches without trying to fck yourself.
Perth mint lunars are collectables and numismatic just use that as your verbatim statement. Don't fight a Gorilla its painful
Get your own spreadsheet for recording ounces purchased, price,Seller,buyer,date price per ounce paid etc.
There are some excellent spreadsheets members here use, just ask the forum.Then you can easily reconcile Physical holdings with receipts.
Take a breath just work through it.
 
And honestly think about setting up your own SMSF.
Its not that hard
A good Accountant, a good auditor, A good Insurance broker,A bank safety deposit box or similar,A good spreadsheet,A good formatted invoice for buying and selling,A good formatted Investment strategy, recording means for member insurance,An understanding of the Arms length rule etc
You can get your SMSF set up by an accountant or set one up yourself using Cleardocs or similar.
Companies like Cleardocks offer all compliance needs updated as ATO rules change.
Its not a large investment in time when you consider its your life's money, you have total control.
 
Thanks for the advice!
I'll probably at the least sell all the coins and stick to bars, then at least esuperfund won't harrass me to prove they aren't collectables every year. Then I'll probably ditch esuperfund and find something better, MAYBE wrap up the fund, idk yet. I like to just put things in place and forget about it, I don't like thinking about it all the time or doing work. Mostly the SMSF hasn't been too bad for that but the last couple of years have been more trouble than it's worth.

Acorn said:
1,000 oz in Gold? Wow!
Click to expand...
lol, no I wish. I do have a bit of gold in the fund but was talking about silver.
 
Could someone explain what the difference is between collectables and normal everyday coins/bullion ? Why do they have an issue with collectables?
Thanks
 
Lucky said:
Could someone explain what the difference is between collectables and normal everyday coins/bullion ? Why do they have an issue with collectables?
Thanks
Click to expand...

Collectables are valued differently. They have a bullion value + collector value. Collectables trade well above spot price.

Bullion coins are primarily valued for their metal value. They always trade at close to spot price.
 
"I do not want to perform a hundred transactions" What was you exit strategy anyway? 1 lot to a dealer and miss your premiums?

Would genuinely love to know..
 
Lucky said:
Why do they have an issue with collectables?
Click to expand...

ATO advice specifies a difference between the two as @66rounds pointed out, as such, they have to be managed differently.

Collectables and personal use assets must not be stored in the private residence of any related party. If they were acquired before 1 July 2011 you had until 1 July 2016 to meet this requirement.
Click to expand...

and

Collectables and personal use assets owned by the fund must be insured in the name of the fund within seven days of acquiring them.
Click to expand...
 
"Collectables and personal use assets must not be stored in the private residence of any related party."

It's something related to you can't get a benefit (including enjoyment) from SMSF assets until after preservation age. Likewise if you purchase a painting for your SMSF or a block of land, you can't hang the painting in your house, or use the block of land.
 
Just be happy that your superfund bullion hasn't been stolen! That's always a fun one to deal with!
 
You must log in or register to reply here.
Back
Top