SMSFs and related party transactions - The issues and the opportunities presentation

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
• The prohibition against providing financial assistance to members
• The in-house asset rules as they apply to loans and leases
• The arm's length dealing requirements
• The sole purpose test
• The non-arm's length income rules.

Author profile

David Foulds

David is a Director in the Superannuation division of Pitcher Partners. He has more than 35 years’ experience in chartered accounting, having worked in both audit and private business areas. David has spent the last twenty five years exclusively in the Superannuation division providing consulting and administrative services. David has had extensive involvement in providing retirement and estate planning advice to clients of the practice. David is Chair of the ASFA Small Funds discussion group • Melbourne and is a current member of ASFA National SMSF Policy Sub-Committee. He has been a speaker at a number of Superannuation conferences presented on superannuation and retirement planning issues. - Current at 24 August 2012

More by David FOULDS

• SMSFs and related party transactions - The issues and the opportunities paper - 22-August-2012
• Market linked pensions paper - 28-February-2006
• Superannuation workshop - 09-June-1999
• Surcharge and SGC planning issues - 04-June-1998

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