I have two clients that have unlisted investments and were wanting to transfer into/sell to their SMSF's.

The structure is:

• Valley Pty Ltd (Owned 80% by Parks Pty Ltd, 20% ABC FT)

• Parks Pty Ltd (Owned 50/50 by my two clients)

I know that the members can't sell their shares in Parks Pty Ltd to the SMSF, even 5% in house asset wouldn't help as neither own more than 50%, also they can't sell to each other's SMSF as that would fall under the anti avoidance provisions I'm pretty sure.

I was wondering if from an audit perspective Parks Pty Ltd could sell the shares in Valley Pty Ltd to the SMSF's.

My reasoning being that technically Parks Pty Ltd would be selling the shares in the other company, not the members, also given the company is 50/50 it is therefore not a Part 8 Associate I would think.

If I'm missing something really obvious my apologies in advance, I don't have to deal with these often but have done some research and couldn't seem to find anything confirming there was a problem with the above.