*SMSF trustees who become a ‘disqualified person’: Tax Office reminder of obligation to cease being a trustee and remove their interest from the fund [60]

The Tax Office has issued an SMSF News Alert reminding trustees of their obligations if they become a “disqualified person” under s 120 of the SIS Act. The Tax Office notes that if a trustee of an SMSF (or a director of the corporate trustee of an SMSF) becomes a “disqualified person”, the person is not…

ASIC warns consumers about ads recommending SMSFs purchase properties through NRAS [59]

ASIC has warned consumers about advertising that promotes the use of self-managed super funds (SMSFs) to invest in residential properties through the National Rental Affordability Scheme (NRAS). That Scheme is run by the Federal Government in partnership with the states and territories to promote investment in affordable rental housing. The Scheme offers direct payments and…

ATO concerned about drop in SMSF audit reports and SMSF trustees’ knowledge of their obligations [58]

ATO Assistant Commissioner, Superannuation, Matthew Bambrick recently spoke at the 5th Annual 2013 SISFA SMSF Forum and discussed issues of concern to the ATO regarding the SMSF sector. Mr Bambrick noted that over the past few years, the proportion of SMSFs reported to the ATO by approved auditors has remained “fairly stable at 2%”. However,…

Australasian Annuities Pty Ltd (in liq) v Rowley Super Fund Pty Ltd – director breached fiduciary duty in making super payments to himself and family [57]

The Victorian Supreme Court has found that the sole director of a family trust company had breached fiduciary duties owed to the company by facilitating the making of contributions to a super fund on behalf of individual members of the super fund. The director had arranged for the company to borrow some $2.5m to make…

*APRA Registrable Superannuation Entities (RSE’s) – ASIC defers start date of disclosure for trustee remuneration etc. to 1 July 2014 (from 31.10.13) [56]

ASIC on Tue 15.10.2013, registered Class Order [CO 13/1275] to exempt APRA registrable superannuation entity (RSE) licensees from the new trustee remuneration disclosure obligations until 1 July 2014 (deferred from 31 October 2013). The class order amends Class Order [CO 13/830] which had previously deferred the original start date from 1 July 2013 to 31 October 2013. In deferring the start date again…

*GSTD 2013/D4 – after the Naidoo case, only objection decisions about s105-65 in a private rulings can be reviewed (if no assessment has issued) [55]

This Draft GST Determination, released on Wed 9.10.2013, states that taxpayers can object to private rulings that the Commissioner makes on the way in which s 105-65 of Sch 1 to the TAA applies or would apply, but only if the Commissioner has not made an assessment of the net amount for the tax period in which…

*GSTD 2013/4 – GST and consideration for capital items that diminish in value can be counted to measure supplies that are charitable [54]

This GST Determination, released on Wed 2.10.2013, states that the consideration the supplier provides for acquiring assets that diminish in value over time can be taken into account in determining whether a supply in that period is GST-free under s 38-250(2)(b)(ii) of the GST Act, to the extent the consideration provided reasonably relates to that supply.…

*Re Hampson and FCT – GST refund claim made too late – extension of time to seek review refused [52]

The AAT has refused a taxpayer’s request for an extension to time to apply to the Tribunal for review of the Commissioner’s objection decision (dated 31 October 2011) refusing a GST refund in relation to the June 2004 quarter. The Commissioner had refused the refund on the basis that the application was made after the 4-year cut-off date for…