by Sharat  09/05/2016  200 Page Views
1 Comments  Super, Managed Funds, Wealth, Insurance, SMSF, Pensions
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.