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Kylie Wee

Nov 24, 2023

Bare trust deed and loan agreement to maintain more than 10 years.

in SMSF Technical Forum

Hi All,

I am currently auditing a Fund, which has investment properties under Limited recourse borrowing arrangements.

The properties were purchased 10 years ago and the loans are still ongoing. However, the trustee members are unable to provide signed loan agreements with the bank and signed full copy of the bare trust deed. As per the acocuntant, the property was purchased more than 10 years ago and they are not obliged to keep the record of these documents for more than 10 years.

Could you please advise whether the statement by the accountant applies for bare trust deed and loan agreements?

1 comment

Comments (1)

THE AUDITORS INSTITUTE

Nov 26, 2023

Hi Kylie

My view is they are required to keep those documents as it is the only way that you can check that the Fund has complied with the LRBA rules under SIS sections 67A & 67B.

The Trustees should be able t6o request a copy of the loan agreement from the bank.

Thanks

The Auditors Institute