Catch up on the latest topical issues from the NSW Tax Forum, the largest tax program in Australia. With its wide mix of tax topics, this is a must have video bundle featuring presentations from premier tax advisors.
Session 2B: LRBAs and Issues with related Party Loans
Speaker: Daniel Butler, CTA, DBA Lawyers
Interest free and very flexible related and friendly party LRBAs flourished in recent years; especially after several favourable ATO private binding ruling issues. The ATO, in late 2014, then issued ATO IDs 2014/39 & 40 (which then were updated to ATO IDs 2015/27 & 28 due to the look through bare-instalment trust provisions in div 235 of the ITAA 1997 being introduced in 2015). Broadly, the ATO declared that it would tax income from related/friendly LRBAs at 47% as non-arm's length income ('NALI').
This session will bring you right up to speed on the latest state of play including:
Feedback on the ATO’s PCG 2016/5 and the clarifications that have since been issued regarding the safe harbours.
What ATO activity has been taken since 30 June 2016 and what are the ATO plans for future audits.
The latest on the LRBAs for units in unlisted trusts and private company shares outside the safe harbours.
What evidence is required to support LRBAs for units and shares outside the safe harbours.
What planning strategies and lessons have we learnt to minimise tax risks with LRBAs.
What to really look out for when reviewing related party LRBAs.
Since 2007 superannuation tax changes, there has been keen marketplace interest in SMSFs holding real property for the purpose of building retirement wealth. This session will deal with the tax issues which arise for SMSFs holding real property as well as the issues which arise between landlord and lessee, including:
Capital works and plant and equipment write-offs – who pays for it and who owns it?
Issues in agreeing leasing terms between an SMSF landowner and related party tenant.
Tax issues on disposal by sale/distribution in specie.
SMSF investment in unit trusts – managing the interface between the 50% and one-third CGT general discounts.
Limited recourse borrowing arrangement – accounting and tax treatment.
Any new considerations arising out of proposed tax changes.
Session 6B: Contribution Issues: Past, Present and Future
Speaker: Jemma Sanderson, CTA, Cooper Partners
This session will address the current state of play for both concessions and non-concessional contributions.
The sessions will also address specific issues in respect of excess contributions, which have been able to be refunded from superannuation since 1 July 2013. However, the intricacies in the las and how the refunds operate has resulted in significant implications for funds and members where the provisions are not applied correctly.