Whittle and ASIC – SMSF auditor disqualification upheld – breach of independence standards by auditing her brother’s fund for 9 years and her de-facto partner’s fund for 6 years

The AAT has affirmed a decision by ASIC to disqualify an approved SMSF auditor for failing to comply with the auditor independence requirements by auditing the SMSFs of close family members. The applicant, an accountant since 1975, had conducted numerous audits of SMSFs since 1999. Following an ATO compliance review, it was revealed that she had…

Takeover of Westfield by Unibail-Rodamco – no rollover so cost base has to be calculated and apportioned to 3 elements of stapled security

With 30 June clicking over, the managed funds and superannuation industry has been busily producing year end tax reporting on behalf of investors and members. A core element of this is reflecting on whether any major corporate actions took place in the preceding 12 months and the tax implications. This year was no different, but…

FCT v Chen – Asset freezing order granted over Australian and foreign assets of an Indian citizen, to secure $7.5m tax debts (94% of income omitted if Commissioner’s assessment is correct)

The Federal Court has granted the Commissioner a freezing order of the assets of a taxpayer concerning a $7.5 million tax debt. The Commissioner had sought freezing orders against the taxpayer under Division 7.4 of the Federal Court Rules 2011 (Cth).  After hearing counsel for the Commission, Colvin J made orders substantially in the terms sought.…

SuperStream to now apply to SMSFs – applying to rollovers – draft regulations released requiring Fund to advise ATO of banking details etc. 10 days prior

On Tuesday 17 July 2018, the Government released exposure draft regulations, proposing to extend SuperStream to include rollovers to and from self-managed superannuation funds (SMSFs). The Minister previously announced this measure, on 27 April 2018, at the same time as announcing that SMSFs will be allowed to have up to 6 members (instead of only 4). She announced…