The SMSF provided loan to a Developer with 25% per annum which is 83% of total Fund assets.
AS per the trustee the developer went into bankruptcy and therefore the SMSF trustees have written off the loan in the Financial Statements. They only provided email advising us of the bankruptcy and that there were no documentations since the communications were only phone conversation.
What are the requirements to substantiate the writing off the loan or can we immediately issue contravention report. Thanks for your comments.
Thank you very much for your help