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SMSF 13.22C Trust Obligations

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Sharat View Drop Down

Joined: 09/May/2016
Location: Australia
Posts: 1
  Quote Sharat Quote  Post ReplyReply Direct Link To This Post Topic: SMSF 13.22C Trust Obligations
    Posted: 09/May/2016 at 15:28
An SMSF own 100% units in a unit trust (related entity). Same Trust owe say $10,000 to a company (again related company). Now the trust want to clear off the loan by issuing units of trust (assume trust deed allow this provision). Since the directors of the company are the members of SMSF, they are planning to transfer the units to trust via in-specie contribution (just to make sure SMSF owns 100% units in trust).

My question is, is it OK to go with such arrangement. Does 13.22C provisions are met? I doubt whether we are able bring in units of unlisted trust as in-specie contributions.

AnthonyK View Drop Down

Joined: 04/October/2014
Location: The Shire
Posts: 2
  Quote AnthonyK Quote  Post ReplyReply Direct Link To This Post Posted: 10/August/2016 at 05:51
Hi Sharat
Th emost important fact is what year was your SMSF and UT established? was it before May 1998?
If so there are some rules which may help you. 13.22 Regulations were not introduced until 28-06-2000 but there are retro rules in there too,
13.22B deals with pre 1999 assets, 13.22C deals with post 1999 assets and 13.22D has a listy of 14 penalty conditions.
I have wporked with these trusts since 1992 following the ATO V Forli case in April 1991 which the ATO lost. It is possible to restructure a pre 1999 trust to restore its pre 2009 state.
Most accountants and lawyers have put all these in the too hard basket ,since June 30 2009.

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