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Phuong Hoang Thi Ngo

Dec 20, 2022

COS signed before set up SF date

in SMSF Technical Forum

Dear Sir/Madam,

An signed Contract of Sale for buy property off-the-land on 03/09/2019 - Put Purchaser is member personal name and/or Nominee on COS as member has intend buy this property for super fund . Member deposit 10% from personal money on 10/09/2019 . The Trust Deed set up 08/10/2019.

The Nomination Form sign on 17/12/2020 state the Nominee is Company Trustee of SMSF name (although they have set up Company Bare Trustee already). So accountant only recorded 10% deposit as personal contribution undeducted in 2021 FY .

I am wondering that for audit 2021 FY

1/ Whether really need ask provide Bare Trust at this stage as the property has not settled yet until now

2/ Please guide me any issue that whether breach super law or just notes what need rectified in management letter for this case

Many thanks

2 answers0 replies

Comments (2)

THE AUDITORS INSTITUTE

Dec 20, 2022

Hi Phuong

Re the bare trust deed this is normally only prepared as part of the property settlement so you do not need to request this given the property has not settled.

Re the name that is on the contract & the dating of the contract the state in Australia that the property was purchased in will be relevant.

An article that explains the complexity re the rules re different states is found at:

Seamless SMSF - Limited Recourse Borrowing Arrangements (LRBA) and Safe Harbour Rules – Your Questions Answered

Given the issues that you have raised and the potential double stamp duty implications the trustee should have received legal advice in relation to the purchase of the property by the SMSF.

Thanks

SMSF AAA

Phuong Hoang Thi Ngo

Dec 20, 2022

Replying to

Thanks a lot