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Michael Kulas

Nov 17, 2020

SMSF re-activated?

in SMSF Technical Forum

I recently received a 2020 audit for a fund that previously wound up in 2018. The email with paperwork said 'Hi Mike, Re-activated Fund for Audit.'

I have looked around and on the ATO website it says 'Once a fund is wound up, it can’t be reactivated.'

The ABN & TFN for the fund are different in 2020. I assume this means that the ATO considers this a new entity even though the name of the fund is the same. The members have changed - it is now a single member fund with one of the members in 2018 still a member in 2020, the other has not come back to the fund.

The issue I have is that rather than a new deed being drafted and signed I only have two deeds of resignation & appointment that refer to the previous fund deed - one to resign & appoint a new individual and a second to resign both individuals and appoint a corporate trustee.

This deed was used to purchase a property via an LRBA.

Is it expected that a new deed be signed referring to the new fund?

Should the audit be qualified and ACR lodged?

1 answer0 replies

Comments (1)

THE AUDITORS INSTITUTE

Feb 11, 2021

Hi Michael

If a new Fund was created (with a new TFN & new ABN) then I would expect a new Trust Deed be prepared at the time this new Fund was created. I agree the ATO clearly states on its website that "once a fund is wound up, it can't be reactivated". I would recommend that the Trustees engage a superannuation lawyer to review & rectify the issue as required. The result of their review & advised rectification steps would then allow you to complete your audit report and the ACR.

SMSF AAA