Self Managed Super Fund News – Deadline 30 June 2016

By |2017-12-19T14:41:04+00:00April 12th, 2016|

SMSF Borrowing – New Safe Harbour Guidelines & deadline for borrowing arrangements to be made arms length

From time to time the ATO issues Practical Compliance Guidelines (“PCG”) which are designed to provide taxpayers an idea of where the safe harbours are in the sometimes murky waters of taxation compliance.

The most recent PCG issued was PCG […]

Self Managed Super Fund News – Deadline 30 June 2016

By |2017-12-19T14:41:06+00:00April 12th, 2016|

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SMSF Borrowing – New Safe Harbour Guidelines & deadline for borrowing arrangements to be made arms length

From time to time the ATO issues Practical Compliance Guidelines (“PCG”) which are designed to provide taxpayers an idea of where the safe harbours are in the sometimes murky waters of taxation compliance.

The most recent PCG issued was PCG 2016/5 “Income tax – arm’s length terms for Limited Recourse Borrowing Arrangements established by self managed superannuation funds” (“the ATO Guideline”).

Limited Recourse Borrowing Arrangements (“LRBAs”) are an exception to the general rule that prohibits self managed superannuation funds (“SMSFs”) from borrowing.  In summary an LRBA is one where an SMSF can borrow to buy certain investments where the property is held in a bare trust structure and the recourse that the lender has is limited