PCG 2016/5 – Safe harbours for related party LRBA’s for real property and listed shares to avoid audits of SMSF’s for NALI
On 28.9.16, the Commissioner issued Practical Compliance Guideline 2016/5 offering practical guidance as to the terms on which related party ‘limited recourse borrowing arrangements’ (LBRA’s) without attracting audits for ‘non-arm’s length income’ assessments under s295-550(1) of the Income Tax Assessment Act 1997 (ITAA97). It provides 2 ‘safe harbours’ – one for LBRA’s used to buy…