Circumvention of in-house asset rules by SMSFs using related party agreements - TA 2009/16
11 Jun 2009
On 10 June 2009, the ATO issued Taxpayer Alert TA 2009/16 entitled "Circumvention of in-house asset rules by self-managed superannuation funds using related party agreements".
The Taxpayer Alert describes an arrangement where a self-managed superannuation fund (SMSF) enters into an agreement (sometimes referred to as a joint venture agreement) with a related trust to acquire assets such as rental property in order to obtain certain taxation and superannuation benefits. The ATO is concerned that such an arrangement may breach the superannuation in-house asset rules.
In a media release issued the same day, the Commissioner, Michael D'Ascenzo, said: "This alert serves as a timely reminder to trustees that we are looking closely at SMSFs to ensure they are meeting their obligations in relation to loans, in-house assets, borrowings and non-arms length transactions."
For a copy of TA 2009/16, go here
For a copy of the ATO media release, No 2009/41, 10 June 2009, go here