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Good news for SMSFs and bankruptcy comes with a caution

Publication date: 05 May 15 | Source: CCH TAX WEEK

Issue: Issue 15, 24 Apr 2015

Pages: pp 1-3

Abstract:

A recent court decision demonstrates what can happen when a business borrows from a bank to make large super contributions to an SMSF, and then the business folds. One argument in the case suggested that the SMSF was entitled to keep the money, while another argument involving the application of a well established rule, meant that the bank was entitled to its money back.

The case should act as a caution to directors, trustees and their advisers that complex legal structures come with attached obligations that can be the undoing of the parties.

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Author profiles

David Oon
David is a Consultant with DBA Lawyers. - Current at 01 August 2013
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Bryce Figot CTA
Bryce is a Director at leading SMSF law firm DBA Lawyers. He practices predominantly in taxation and superannuation law, particularly the law of SMSFs. He is regularly quoted and published in the Australian Financial Review, the Herald Sun, CCH and LexisNexis publications, and elsewhere in the financial press. He presents extensively to accountants, financial planners and lawyers Australia-wide. Bryce has worked with DBA Lawyers since 2003. He holds both a bachelor degree and a masters degree in law and is an accredited Specialist SMSF Advisor. - Current at 10 December 2015
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