Published on 22 Aug 12
by VICTORIAN DIVISION, THE TAX INSTITUTE
Dealings by SMSFs with related parties are a potential minefield due to regulatory and tax rules which regulate, prohibit or tax an SMSF that conducts such activities. However, if structured correctly, related party transactions can create great opportunities for SMSFs and related parties alike. This paper attempts to navigate this minefield by covering the:
• prohibition against assets from related parties
• prohibition against providing financial assistance to members
• in-house asset rules as they apply to loans and leases
• arm's length dealing requirements
• sole purpose test
• non-arm's length income rules.
David is Director - Superannuation Division with Pitcher Partners.
Current at 19 December 2005 Current at 30 August 2012
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