22 Jul 09 ATO welcomes AAT decision on breach of in-house asset rules
In a media release issued on 17 July 2009, the ATO welcomed the AAT's decision in JNVQ and FCT  AATA 522 (14 July 2009), which upheld the ATO’s decision to issue a notice of non-compliance to a self-managed super fund (SMSF) found to have contravened the in-house asset rules. The AAT concluded that the seriousness of the breach and the time taken by the fund’s trustees to correct it weighed most heavily on its decision.
The Commissioner, Michael D’Ascenzo, said the decision is a reminder to trustees to act on any breaches. "The sole purpose of an SMSF is to provide benefits for members in retirement and should not be used to invest in related parties above the 5% in-house asset limit," Mr D’Ascenzo said.
For a copy of the ATO media release, No 2009/51, 17 July 2009, go here