2012 South Australian Tax Intensive

Maximising the benefits offered by SMSF structures case study and solutions

Author(s):  Stephen HEATH

Advisers have concentrated on the benefits offered through contributions to SMSFs, investments in SMSFs and the payment of lump sums and pensions. With aging SMSF members, is there more advisers could be doing to optimise the benefits a SMSF structure can provide to members and their families? This practical paper is aimed at investigating strategies and techniques on how to manage benefits during accumulation, retirement and death, for the benefit of the member and their family. Using a range of real life case studies to examine and demonstrate some of the potential benefits and legal isses of implementing these strategies, areas covered include:

• the concept of members interests and segregation of fund investments
• creation of different reserves in funds
• taxation of members’ benefits and reducing tax on death
• SMSFs as a multi-generational wealth transfer structure.

Materials from this session:

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• Maximising the benefits offered by SMSF structures case study and solutions paper

  $75.00 non member price

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Use and abuse of corporate beneficiaries case study and solutions

Author(s):  Ian SNOOK

This paper looks at a range of issues related to the use of corporate beneficiaries – past, present and future. Practical case studies will work through some of the issues that have arisen, and will continue to arise, due to the popularity of corporate beneficiaries and the fact that many taxpayers still use them even in light of the many changes.

Issues to be explored includes:

• streaming franked dividends to corporate beneficiaries
• continuing appointment of trust net income to companies
• the ongoing impact of quarantined UPEs
• sub-trusts:
  • timing of the investment agreement
  • when are the payments under the investment agreement required to be accounted for and paid?
  • what is the strategy at the end of 7 years or 10 years to pay the sub-trust?
• the implications of creating a Division 7A loan between the company and the trust, including the timing of Division 7A application
• interest deductibility for both sub-trust returns or the interest component of Division 7A 109N repayments
• using the corporate beneficiary as the “balance beneficiary” in the trustee resolution prepared at 30 June
• application of 109XI and other provisions within Division 7A
• refreshing strategies.

Materials from this session:

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• Use and abuse of corporate beneficiaries case study and solutions paper

  $75.00 non member price

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Real property transactions: Opportunities and pitfalls case study and solutions

Author(s):  Michael Chrisohoou

Structuring acquisitions, development, leasing and sale of real property provides continuing challenges and many opportunities for tax advisers. This paper explores the key issues confronting property owners, advisers and the courts, specifically:

• structuring: acquisitions for long term capital growth, development, and short term profits
• gains/losses on capital/revenue account – profit on sale or mere realisation
• property development vs property investment
• depreciating assets - undissected lump sum vs allocation to different assets
• GST – revisiting the margin scheme. Going concern for ‘leasing enterprises’.

Materials from this session:

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• Real property transactions: Opportunities and pitfalls case study and solutions paper

  $75.00 non member price

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