What happens if the SMSF Trustee can’t legally own the asset?

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What happens if the SMSF Trustee can’t legally own the asset?

A Trustee of Self-Managed Superannuation Fund is obliged to have all SMSF assets in its own name. For example: The Nasution SMSF Fund owns a farm in Kyneton, Victoria. The Trustee of the Nasution SMSF is Camalot Pty Ltd. By law, the legal owner of the farm must be Camalot Pty […]

ATO says ‘loans’ from company were not loans

ATO successfully penalises professional for no Loan Agreement Rowntree v FCT [2018] FCA 182 shows that only a legally prepared Loan Agreement satisfies the ATO for related-party loans. In this case, Justice Raes stated: ‘Bruce Rowntree was an experienced lawyer with extensive academic qualifications in law, finance and taxation. Despite having this impressive […]

Can Family Trusts override the Family Court?

Family Trust v’s Family Court As tax lawyers, Legal Consolidated structures clients’ affairs to legally reduce tax burdens. We are also asked to: consider asset protection if you or your business goes bankrupt or insolvent draft 3-Generation Testamentary Trust Wills to reduce the four Australian death duties put Divorce Protection […]

Top 7 legal documents Accountants build at end of financial year

7 documents Accountants build at end of financial year I have sold over 16,000 Self-Managed Super Funds and 18,000 Family Trust Deeds online. Surprisingly, however, these are the 8 most common documents Accountants build at End of Financial Year: 1. Trust Distribution Statements for Family Trusts 2. Family Trust Vesting […]

Travel costs to visit Accountant & Adviser tax deductible – says ATO TD 2017/8

When are costs of travel for a tax return deductible to your accountant? This ATO Tax Determination TD 2017/8 was issued 29 March 2017. When you visit your accountant or financial planner the cost of travelling is tax deductible. This is when you are having your tax return prepared by a ‘recognised […]

Can you abandon a gift in a Will to keep the pension?

Can you abandon a gift in a Will to keep the pension? The Financial Planner carefully structures Mary’s affairs. Mary receives a $1 pension and Concession Card. But then, Mary’s mother dies. Mum’s Will leaves everything to Mary. The inheritance costs Mary her $1 pension and Concession Card. Mary has […]

Accountants acting in clients ‘best interests’ – new rules

Tax agents have to act in the client’s ‘best interests’: s 30-10  TASA But what does that mean? What about a ‘conflict of interest’? Can you break the law to protect the client? The Tax Practitioners Board (TPB) expresses its views in Information Sheets. Legal Consolidated has summarised the TPB’s view below: […]

Reserves in a SMSF – How to complete annual return

A reserve account in a SMSF is unallocated. It has no owner. The wealth in a superannuation fund belongs to a member. You cannot have money in a superannuation fund not earmarked for a person. An exception is SMSF reserves. ‘Reserve accounts’ are assets in your SMSF that is not […]