Submit Search
Upload
Darren_Wynen
•
0 likes
•
135 views
spaaweb
Follow
Presentation at SPAA NC2011
Read less
Read more
Education
Report
Share
Report
Share
1 of 30
Recommended
Webinar - Changing face of SMSF - June 2014
Webinar - Changing face of SMSF - June 2014
The SMSF Academy Pty Ltd
Deborah_Wixted
Deborah_Wixted
spaaweb
Top10 SMSF strategies for 2012-13
Top10 SMSF strategies for 2012-13
The SMSF Academy Pty Ltd
Pension Levy Newsletter 12.05.11
Pension Levy Newsletter 12.05.11
cian mahony
Netwealth educational webinar - The 5 deadly sins of SMSFs
Netwealth educational webinar - The 5 deadly sins of SMSFs
netwealthInvest
International Aspects Of Ugandas Income Taxation
International Aspects Of Ugandas Income Taxation
Akunobera
Chapter 9 presentation
Chapter 9 presentation
dphil002
Estate & Gift Tax Planning That You Should Consider Before the Election
Estate & Gift Tax Planning That You Should Consider Before the Election
Citrin Cooperman
Recommended
Webinar - Changing face of SMSF - June 2014
Webinar - Changing face of SMSF - June 2014
The SMSF Academy Pty Ltd
Deborah_Wixted
Deborah_Wixted
spaaweb
Top10 SMSF strategies for 2012-13
Top10 SMSF strategies for 2012-13
The SMSF Academy Pty Ltd
Pension Levy Newsletter 12.05.11
Pension Levy Newsletter 12.05.11
cian mahony
Netwealth educational webinar - The 5 deadly sins of SMSFs
Netwealth educational webinar - The 5 deadly sins of SMSFs
netwealthInvest
International Aspects Of Ugandas Income Taxation
International Aspects Of Ugandas Income Taxation
Akunobera
Chapter 9 presentation
Chapter 9 presentation
dphil002
Estate & Gift Tax Planning That You Should Consider Before the Election
Estate & Gift Tax Planning That You Should Consider Before the Election
Citrin Cooperman
Intuit News Alert- DTAA and IPPA between Mauritius and Kenya
Intuit News Alert- DTAA and IPPA between Mauritius and Kenya
Intuit Consultancy
Sp2 Intergovernmental Personal Benefits Cooperative Report city council repor...
Sp2 Intergovernmental Personal Benefits Cooperative Report city council repor...
cityofevanston
Understanding Deposit Insurance
Understanding Deposit Insurance
rexcris
IMF - clash of the titans
IMF - clash of the titans
George Gabriel
Uniformity in fund taxation
Uniformity in fund taxation
altsmart
COVID-19 - How Staffing Companies Can Navigate the Crisis
COVID-19 - How Staffing Companies Can Navigate the Crisis
Citrin Cooperman
2013 cch basic principles ch09
2013 cch basic principles ch09
dphil002
27448938 income-from-other-sources-1
27448938 income-from-other-sources-1
Punit Agrawal
Varmas interim report 1 January - 30 September 2019
Varmas interim report 1 January - 30 September 2019
Työeläkeyhtiö Varma
Double Tax Treaties: Asia & Europe
Double Tax Treaties: Asia & Europe
The International Business Structuring Association
2013 cch basic principles ch08
2013 cch basic principles ch08
dphil002
Income Tax Other Sources
Income Tax Other Sources
Vivek Goel
Kfs annuity review
Kfs annuity review
roowah1
Income from sources other than salary
Income from sources other than salary
Mohammad Ghori
Corporate taxforum
Corporate taxforum
EY Belgium
Benefits of filing NIL Return
Benefits of filing NIL Return
Jayesh Alwani
Income under the head other source
Income under the head other source
yash nahata
Learning Curvehandout May09
Learning Curvehandout May09
bethljohnson
Income from other sources3A 18 and 31
Income from other sources3A 18 and 31
Augustin Bangalore
WEBINAR: Changing Face of SMSF (February 2013)
WEBINAR: Changing Face of SMSF (February 2013)
The SMSF Academy Pty Ltd
Group 4 CAT250
Group 4 CAT250
Elizabeth Loftin
Paul_Slattery
Paul_Slattery
spaaweb
More Related Content
What's hot
Intuit News Alert- DTAA and IPPA between Mauritius and Kenya
Intuit News Alert- DTAA and IPPA between Mauritius and Kenya
Intuit Consultancy
Sp2 Intergovernmental Personal Benefits Cooperative Report city council repor...
Sp2 Intergovernmental Personal Benefits Cooperative Report city council repor...
cityofevanston
Understanding Deposit Insurance
Understanding Deposit Insurance
rexcris
IMF - clash of the titans
IMF - clash of the titans
George Gabriel
Uniformity in fund taxation
Uniformity in fund taxation
altsmart
COVID-19 - How Staffing Companies Can Navigate the Crisis
COVID-19 - How Staffing Companies Can Navigate the Crisis
Citrin Cooperman
2013 cch basic principles ch09
2013 cch basic principles ch09
dphil002
27448938 income-from-other-sources-1
27448938 income-from-other-sources-1
Punit Agrawal
Varmas interim report 1 January - 30 September 2019
Varmas interim report 1 January - 30 September 2019
Työeläkeyhtiö Varma
Double Tax Treaties: Asia & Europe
Double Tax Treaties: Asia & Europe
The International Business Structuring Association
2013 cch basic principles ch08
2013 cch basic principles ch08
dphil002
Income Tax Other Sources
Income Tax Other Sources
Vivek Goel
Kfs annuity review
Kfs annuity review
roowah1
Income from sources other than salary
Income from sources other than salary
Mohammad Ghori
Corporate taxforum
Corporate taxforum
EY Belgium
Benefits of filing NIL Return
Benefits of filing NIL Return
Jayesh Alwani
Income under the head other source
Income under the head other source
yash nahata
Learning Curvehandout May09
Learning Curvehandout May09
bethljohnson
Income from other sources3A 18 and 31
Income from other sources3A 18 and 31
Augustin Bangalore
WEBINAR: Changing Face of SMSF (February 2013)
WEBINAR: Changing Face of SMSF (February 2013)
The SMSF Academy Pty Ltd
What's hot
(20)
Intuit News Alert- DTAA and IPPA between Mauritius and Kenya
Intuit News Alert- DTAA and IPPA between Mauritius and Kenya
Sp2 Intergovernmental Personal Benefits Cooperative Report city council repor...
Sp2 Intergovernmental Personal Benefits Cooperative Report city council repor...
Understanding Deposit Insurance
Understanding Deposit Insurance
IMF - clash of the titans
IMF - clash of the titans
Uniformity in fund taxation
Uniformity in fund taxation
COVID-19 - How Staffing Companies Can Navigate the Crisis
COVID-19 - How Staffing Companies Can Navigate the Crisis
2013 cch basic principles ch09
2013 cch basic principles ch09
27448938 income-from-other-sources-1
27448938 income-from-other-sources-1
Varmas interim report 1 January - 30 September 2019
Varmas interim report 1 January - 30 September 2019
Double Tax Treaties: Asia & Europe
Double Tax Treaties: Asia & Europe
2013 cch basic principles ch08
2013 cch basic principles ch08
Income Tax Other Sources
Income Tax Other Sources
Kfs annuity review
Kfs annuity review
Income from sources other than salary
Income from sources other than salary
Corporate taxforum
Corporate taxforum
Benefits of filing NIL Return
Benefits of filing NIL Return
Income under the head other source
Income under the head other source
Learning Curvehandout May09
Learning Curvehandout May09
Income from other sources3A 18 and 31
Income from other sources3A 18 and 31
WEBINAR: Changing Face of SMSF (February 2013)
WEBINAR: Changing Face of SMSF (February 2013)
Viewers also liked
Group 4 CAT250
Group 4 CAT250
Elizabeth Loftin
Paul_Slattery
Paul_Slattery
spaaweb
Trender og endringer
Trender og endringer
stinekastad
Trender og endringer
Trender og endringer
stinekastad
Stephen Heath
Stephen Heath
spaaweb
Dan_Butler
Dan_Butler
spaaweb
Deborah Wixted
Deborah Wixted
spaaweb
Dan Butler
Dan Butler
spaaweb
Stuart_Forsyth & Matthew_Halpin
Stuart_Forsyth & Matthew_Halpin
spaaweb
Viewers also liked
(9)
Group 4 CAT250
Group 4 CAT250
Paul_Slattery
Paul_Slattery
Trender og endringer
Trender og endringer
Trender og endringer
Trender og endringer
Stephen Heath
Stephen Heath
Dan_Butler
Dan_Butler
Deborah Wixted
Deborah Wixted
Dan Butler
Dan Butler
Stuart_Forsyth & Matthew_Halpin
Stuart_Forsyth & Matthew_Halpin
Similar to Darren_Wynen
Top10 SMSF strategies for 2011/12
Top10 SMSF strategies for 2011/12
The SMSF Academy Pty Ltd
Third Party Litigation Funding (TPLF)
Third Party Litigation Funding (TPLF)
Chris Miller
Recent cases paper 2016 Financial Services Tax Convention
Recent cases paper 2016 Financial Services Tax Convention
Joanne Dunne
Changing Face of SMSF - March 2014
Changing Face of SMSF - March 2014
The SMSF Academy Pty Ltd
Case Study: Essex Mixed Use May 2016
Case Study: Essex Mixed Use May 2016
Proplend Ltd
Union Budget FY22
Union Budget FY22
Adroit Financial Services Pvt. Ltd.
Beneficial ownership clause presentation
Beneficial ownership clause presentation
Christos Theophilou
Beneficial ownership clause presentation
Beneficial ownership clause presentation
Christos Theophilou
CPA 2 Hour CPE Course LIHTC
CPA 2 Hour CPE Course LIHTC
Midwest Housing Equity Group, Inc
Tax Flash KIB Consulting Dec 19
Tax Flash KIB Consulting Dec 19
kib-consulting
Tax Flash KIB Consulting Dec 19
Tax Flash KIB Consulting Dec 19
kib-consulting
Peter Burgess
Peter Burgess
spaaweb
Innovation Loans Competition Briefing: April 2021
Innovation Loans Competition Briefing: April 2021
KTN
Mathew Chamberlain 2015 State Convention Slides 3 August 2015
Mathew Chamberlain 2015 State Convention Slides 3 August 2015
Mathew Chamberlain
Asia Counsel Insights 16 september 2015
Asia Counsel Insights 16 september 2015
Minh Duong
Trusts, Tax and Estate Planning Update
Trusts, Tax and Estate Planning Update
Matthew Burgess
20150519 ASFA SA Budget Lunch
20150519 ASFA SA Budget Lunch
Darryl Gobbett
Indian government gaining ground
Indian government gaining ground
Neha Sharma
OnPoint Publications Tax Week in Review 11 18 2016
OnPoint Publications Tax Week in Review 11 18 2016
OnPoint Publications
NMTC Financing Presentation (2015)
NMTC Financing Presentation (2015)
Emily Chad
Similar to Darren_Wynen
(20)
Top10 SMSF strategies for 2011/12
Top10 SMSF strategies for 2011/12
Third Party Litigation Funding (TPLF)
Third Party Litigation Funding (TPLF)
Recent cases paper 2016 Financial Services Tax Convention
Recent cases paper 2016 Financial Services Tax Convention
Changing Face of SMSF - March 2014
Changing Face of SMSF - March 2014
Case Study: Essex Mixed Use May 2016
Case Study: Essex Mixed Use May 2016
Union Budget FY22
Union Budget FY22
Beneficial ownership clause presentation
Beneficial ownership clause presentation
Beneficial ownership clause presentation
Beneficial ownership clause presentation
CPA 2 Hour CPE Course LIHTC
CPA 2 Hour CPE Course LIHTC
Tax Flash KIB Consulting Dec 19
Tax Flash KIB Consulting Dec 19
Tax Flash KIB Consulting Dec 19
Tax Flash KIB Consulting Dec 19
Peter Burgess
Peter Burgess
Innovation Loans Competition Briefing: April 2021
Innovation Loans Competition Briefing: April 2021
Mathew Chamberlain 2015 State Convention Slides 3 August 2015
Mathew Chamberlain 2015 State Convention Slides 3 August 2015
Asia Counsel Insights 16 september 2015
Asia Counsel Insights 16 september 2015
Trusts, Tax and Estate Planning Update
Trusts, Tax and Estate Planning Update
20150519 ASFA SA Budget Lunch
20150519 ASFA SA Budget Lunch
Indian government gaining ground
Indian government gaining ground
OnPoint Publications Tax Week in Review 11 18 2016
OnPoint Publications Tax Week in Review 11 18 2016
NMTC Financing Presentation (2015)
NMTC Financing Presentation (2015)
Recently uploaded
Beyond_Borders_Understanding_Anime_and_Manga_Fandom_A_Comprehensive_Audience_...
Beyond_Borders_Understanding_Anime_and_Manga_Fandom_A_Comprehensive_Audience_...
Pooja Bhuva
Plant propagation: Sexual and Asexual propapagation.pptx
Plant propagation: Sexual and Asexual propapagation.pptx
UmeshTimilsina1
Unit 3 Emotional Intelligence and Spiritual Intelligence.pdf
Unit 3 Emotional Intelligence and Spiritual Intelligence.pdf
Dr Vijay Vishwakarma
Holdier Curriculum Vitae (April 2024).pdf
Holdier Curriculum Vitae (April 2024).pdf
agholdier
Google Gemini An AI Revolution in Education.pptx
Google Gemini An AI Revolution in Education.pptx
Dr. Sarita Anand
Python Notes for mca i year students osmania university.docx
Python Notes for mca i year students osmania university.docx
Ramakrishna Reddy Bijjam
ICT role in 21st century education and it's challenges.
ICT role in 21st century education and it's challenges.
MaryamAhmad92
This PowerPoint helps students to consider the concept of infinity.
This PowerPoint helps students to consider the concept of infinity.
christianmathematics
Sensory_Experience_and_Emotional_Resonance_in_Gabriel_Okaras_The_Piano_and_Th...
Sensory_Experience_and_Emotional_Resonance_in_Gabriel_Okaras_The_Piano_and_Th...
Pooja Bhuva
How to Create and Manage Wizard in Odoo 17
How to Create and Manage Wizard in Odoo 17
Celine George
Wellbeing inclusion and digital dystopias.pptx
Wellbeing inclusion and digital dystopias.pptx
Jisc
Application orientated numerical on hev.ppt
Application orientated numerical on hev.ppt
RamjanShidvankar
SOC 101 Demonstration of Learning Presentation
SOC 101 Demonstration of Learning Presentation
camerronhm
Basic Civil Engineering first year Notes- Chapter 4 Building.pptx
Basic Civil Engineering first year Notes- Chapter 4 Building.pptx
Denish Jangid
Fostering Friendships - Enhancing Social Bonds in the Classroom
Fostering Friendships - Enhancing Social Bonds in the Classroom
Pooky Knightsmith
How to Give a Domain for a Field in Odoo 17
How to Give a Domain for a Field in Odoo 17
Celine George
General Principles of Intellectual Property: Concepts of Intellectual Proper...
General Principles of Intellectual Property: Concepts of Intellectual Proper...
Poonam Aher Patil
Single or Multiple melodic lines structure
Single or Multiple melodic lines structure
dhanjurrannsibayan2
UGC NET Paper 1 Mathematical Reasoning & Aptitude.pdf
UGC NET Paper 1 Mathematical Reasoning & Aptitude.pdf
Nirmal Dwivedi
Jual Obat Aborsi Hongkong ( Asli No.1 ) 085657271886 Obat Penggugur Kandungan...
Jual Obat Aborsi Hongkong ( Asli No.1 ) 085657271886 Obat Penggugur Kandungan...
ZurliaSoop
Recently uploaded
(20)
Beyond_Borders_Understanding_Anime_and_Manga_Fandom_A_Comprehensive_Audience_...
Beyond_Borders_Understanding_Anime_and_Manga_Fandom_A_Comprehensive_Audience_...
Plant propagation: Sexual and Asexual propapagation.pptx
Plant propagation: Sexual and Asexual propapagation.pptx
Unit 3 Emotional Intelligence and Spiritual Intelligence.pdf
Unit 3 Emotional Intelligence and Spiritual Intelligence.pdf
Holdier Curriculum Vitae (April 2024).pdf
Holdier Curriculum Vitae (April 2024).pdf
Google Gemini An AI Revolution in Education.pptx
Google Gemini An AI Revolution in Education.pptx
Python Notes for mca i year students osmania university.docx
Python Notes for mca i year students osmania university.docx
ICT role in 21st century education and it's challenges.
ICT role in 21st century education and it's challenges.
This PowerPoint helps students to consider the concept of infinity.
This PowerPoint helps students to consider the concept of infinity.
Sensory_Experience_and_Emotional_Resonance_in_Gabriel_Okaras_The_Piano_and_Th...
Sensory_Experience_and_Emotional_Resonance_in_Gabriel_Okaras_The_Piano_and_Th...
How to Create and Manage Wizard in Odoo 17
How to Create and Manage Wizard in Odoo 17
Wellbeing inclusion and digital dystopias.pptx
Wellbeing inclusion and digital dystopias.pptx
Application orientated numerical on hev.ppt
Application orientated numerical on hev.ppt
SOC 101 Demonstration of Learning Presentation
SOC 101 Demonstration of Learning Presentation
Basic Civil Engineering first year Notes- Chapter 4 Building.pptx
Basic Civil Engineering first year Notes- Chapter 4 Building.pptx
Fostering Friendships - Enhancing Social Bonds in the Classroom
Fostering Friendships - Enhancing Social Bonds in the Classroom
How to Give a Domain for a Field in Odoo 17
How to Give a Domain for a Field in Odoo 17
General Principles of Intellectual Property: Concepts of Intellectual Proper...
General Principles of Intellectual Property: Concepts of Intellectual Proper...
Single or Multiple melodic lines structure
Single or Multiple melodic lines structure
UGC NET Paper 1 Mathematical Reasoning & Aptitude.pdf
UGC NET Paper 1 Mathematical Reasoning & Aptitude.pdf
Jual Obat Aborsi Hongkong ( Asli No.1 ) 085657271886 Obat Penggugur Kandungan...
Jual Obat Aborsi Hongkong ( Asli No.1 ) 085657271886 Obat Penggugur Kandungan...
Darren_Wynen
1.
2011 SMSF National
Conference Session 19A What to expect when the ATO comes knocking Darren Wynen 1 © Insyt Pty td 2010
2.
Introduction Outline of
session The latest intelligence on the ATO’s approach to auditing SMSFs Top target areas of the ATO for 2011 Other compliance issues for 2011 2 © Insyt Pty td 2010
3.
Introduction ATO reviewed
5,700 funds in 2010 In 2011, number doubled to 10,800 Additional $20 million in liabilities for 2010 ATO starting to show a firmer hand in its compliance activities WARNING – New measures introduced for auditors 3 © Insyt Pty td 2010
4.
Latest Intelligence 185
funds made non-complying in 2010 Seems small but up from five in 2007 and 24 funds in 2008 Number of non-compliance cases before the courts on the rise Refer to XPMX, JNVQ, and now ZDDD 4 © Insyt Pty td 2010
5.
Latest Intelligence Complying
fund if S.42A(1) met: Fund is ‘resident regulated super fund’; and Compliance test in S.42A(5) satisfied: No regulatory provisions contravened; or Contraventions occur but the Commissioner says fund should still be complying after considering: Taxation consequences that would arise; Seriousness of contraventions; and All other relevant circumstances 5 © Insyt Pty td 2010
6.
Latest Intelligence EXAMPLE
– Non-resident fund Mark is the sole member of a fund. Becomes a NZ resident from 1 July 2010. CM&C test now in NZ so fund ceased to be Aust. resident fund from 1 July 2010 Fund non-complying for 2011 Can Commissioner override? No,S.42A(5) cannot change outcome. 6 © Insyt Pty td 2010
7.
Latest Intelligence First
factor– taxation consequences Two tax effects: Market value of fund’s assets less undeducted contributions = assessable Fund’s taxable income taxed at 45% WARNING – Loss of pension exemption Pension exemption only applies to a ‘complying superannuation fund’ 7 © Insyt Pty td 2010
8.
Latest Intelligence EXAMPLE
– Non-complying fund Sam is a member of the Tricky SMSF All fund assets support the payment of a pension to Sam Fund deemed non-complying in 2011 Does pension exemption continue to apply? No, exemption only applies to a complying fund 8 © Insyt Pty td 2010
9.
Latest Intelligence EXAMPLE
– Non-complying fund How much tax is payable? Assumptions: Assets = $800,000 UC = $400,000 Income in 2011 of $56,000 One-off adjustment = $400,000 x 45% = $180,000 Tax on fund income = $56,000 x 45% = $25,200 9 © Insyt Pty td 2010
10.
Latest Intelligence Second
factor – seriousness Behaviour Proportion of assets affected Financial exposure of assets Number of contraventions Nature of the contravention 10 © Insyt Pty td 2010
11.
Latest Intelligence Third
factor – all other circumstances Action taken by trustee Trustee level of skill and knowledge Compliance history Trustee’s personal circumstances 11 © Insyt Pty td 2010
12.
Latest Intelligence Other
options of ATO to deal with contraventions Enforceable undertaking Informal arrangement Disqualification Suspending/removing trustee Freezing fund assets Seeking penalties No action 12 © Insyt Pty td 2010
13.
Latest Intelligence When
will the ATO accept an enforceable undertaking? Can the contravention be rectified? Timeframe Past behaviour of the trustee Nature and seriousness of the contravention Criminal consequences arise? 13 © Insyt Pty td 2010
14.
Latest Intelligence CASE
STUDY 1 – Enforceable undertaking Gabriella and Michael are members and trustees of Big Red Car SMSF 1 June 2010 fund lends Michael $30,000 On 8 September 2010 the fund informs the ATO of the contraventions and that: Michael repaying $1,000 per month; and Loan to be repaid by 1 December ATO rejected this timeframe 14 © Insyt Pty td 2010
15.
Latest Intelligence CASE
STUDY 1 continued Would ATO accept payment by mid-October? Yes, because: Undertaking is appropriate; and Terms are appropriate. Comment ATO less likely to accept undertaking if: Loan was significant or trustees could not repay; or Early access benefit. 15 © Insyt Pty td 2010
16.
Latest Intelligence CASE
STUDY 2 – ZDDD Kevin and Janine are members and trustees of the KJ SMSF with $420,000 KJ SMSF invested $420,000 in a pre-Aug 99 unit trust Unit Trust buys a rental property for $320,000 In 2004, loans made the Unit Trust to other related parties 16 © Insyt Pty td 2010
17.
Latest Intelligence CASE
STUDY 2 continued $320,000 to buy rental property Unit Trust $50,000 loan to Kevin $50,000 loan to family trust $420,000 KJ SMSF 17 © Insyt Pty td 2010
18.
Latest Intelligence CASE
STUDY 2 continued Kevin and Janine get deeper into financial difficulties During 2005, unit trust sells property, with proceeds being used to make additional loans Loans are undocumented, unsecured and interest-free At 30 June 2009, loans still outstanding 18 © Insyt Pty td 2010
19.
Latest Intelligence CASE
STUDY 2 continued What breaches have occurred? Breach of sole purpose test – S.62(1) Financial assistance to Kevin – S.65(1)(b) Contravention of S.109(1) Is the Commissioner likely to accept an enforceable undertaking? No, due to seriousness of contraventions Similar to ZDDD 19 © Insyt Pty td 2010
20.
ATO Target Areas
Top ATO targets for 2011 Loans to members or relatives Breaches of the in-house asset rules Administrative breaches Assets not in the fund’s name Contravention of the operating standards Breach of sole purpose test 20 © Insyt Pty td 2010
21.
ATO Target Areas
Loans to members or relatives Accounts for 22% of reported breaches Flow-on breach of in-house asset rules accounts for 16% of breaches 25% of cases, amount withdrawn is not a loan but an early release benefit Factors the ATO looks for to determine if amount is a loan – SMSFR 2009/4 21 © Insyt Pty td 2010
22.
ATO Target Areas
CASE STUDY – No loan agreement Mary and David are members and trustees of the Laundry SMSF Fund advances a loan (3%) of fund assets to Susan, a relative Verbal agreement to repay within 3 years Repayments already being made 22 © Insyt Pty td 2010
23.
ATO Target Areas
CASE STUDY continued Would the ATO say this is a loan? Yes, for the following reasons: Documentary evidence Payment is shown as a loan and interest accrued Terms can be detailed (although verbal) Repayments made on time What are the ramifications? Financial assistance, in-house asset Consider enforceable undertaking 23 © Insyt Pty td 2010
24.
ATO Target Areas
Contravention of in-house asset rules Follow-up of 900 ACRs (400 in 2010) Many breaches result from loans Contraventions can occur from: Breach of 5% cap at year-end; Acquisition of new in-house asset over 5% Commissioner has a range of options to deal with contraventions 24 © Insyt Pty td 2010
25.
ATO Target Areas
Contravention of in-house asset rules Commissioner can also make a determination under S.71(1)(e) – PS LA 2009/8 S.71(1)(e) only applies if ‘unusual or out of the ordinary’, which does not include: Fluctuations in economic conditions; Trustee unaware of requirements; Significant costs to unwind; or Fund does not satisfy non-geared trust exception. 25 © Insyt Pty td 2010
26.
ATO Target Areas
EXAMPLE – Event in 13.22D occur Jack and Jill members and trustees of the Sail SMSF The fund invests in a non-geared unit trust, and satisfies Reg 13.22C On 10 December 2010, the trust buys shares in BHP Ltd 26 © Insyt Pty td 2010
27.
ATO Target Areas
EXAMPLE continued Does the purchase of BHP cause the fund’s investment to be an in-house asset? Yes, event in 13.22D(1)(b) occurs Does this contravene the in-house asset rules Yes, a contravention of S.83 occurs as the value of the units represents 60% of the fund’s assets If 5% cap exceeded at 30 June 2011, would need to prepare a plan to dispose of excess 27 © Insyt Pty td 2010
28.
Other issues Compliance
issues for return Misreporting on return Exempt current pension income Non-lodgment of returns Excess contributions tax 28 © Insyt Pty td 2010
29.
Other issues Compliance
issues with auditors Low-volume auditors High-volume auditors Tax agents Auditors with independence threats 29 © Insyt Pty td 2010
30.
Disclaimer This presentation
is general in nature and intended for educational purposes only. The presentation does not have regard to any particular person’s objectives, taxation or financial situation, legal requirements or other needs not expressly stated. The contents of this presentation do not constitute financial product advice, legal advice or other professional advice. Accordingly, you should not rely on, or act upon, the contents of this presentation without obtaining advice from a suitably qualified advisor because the material is generalised and is not specific to you or your client’s circumstances. Insyt is not engaged in providing legal, accounting, financial planning or any other professional service. Insyt, its associates, authors, or any agent, subcontractor, directors, officers, employees, representatives will not be liable to anyone for any damages (whether direct or indirect, consequential, punitive or exemplary) resulting from any error, omission or inaccuracy of any kind whatsoever from the presentation. Insyt expressly disclaims all and any liability to any person, whether they purchased the article or not, in respect of anything done or omitted to be done by any person in reliance in whole or in part on the contents of the presentation. 30 © Insyt Pty td 2010