borrowing — Pioneering thought — Sladen Legal

borrowing

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Tribunal upholds penalties for an SMSF’s breach of the borrowing restrictions

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Tribunal upholds penalties for an SMSF’s breach of the borrowing restrictions

In the recent decision of FYYB v FC of T 2021 ATC 10-592; [2021] AATA 3567, 5 October 2021, the Australian Administrative Tribunal (AAT) affirmed the Commissioner of Taxation’s (Commissioner) decision to disallow an objection by the taxpayer to an administrative penalty of $7,500 imposed on a self managed superannuation fund (Fund) under the Superannuation Industry (Supervision) Act 1993 (Cth) (SIS Act).

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Sladen Snippet – do intermediary LRBAs count for the total super balance add back provisions?

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Sladen Snippet – do intermediary LRBAs count for the total super balance add back provisions?

An intermediary limited recourse borrowing arrangement (LRBA) differs from a standard LRBA in that the bare trustee, rather than the SMSF trustee, enters into an LRBA borrowing as principal with a lender.

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Sladen snippet - Legislative Instrument permits LRBA borrowings by the bare trustee

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Sladen snippet - Legislative Instrument permits LRBA borrowings by the bare trustee

As previously discussed here, the ATO has now finalized the Superannuation Industry (Supervision) In-house Asset Determination — Intermediary Limited Recourse Borrowing Arrangement Determination 2020 (Determination).