Issue: 471
Sent: 06-03-2012 11:48:02
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A Messy Federal Court Case
Tony Negline
A few weeks ago the Federal Court handed down a judgement involving a Self Managed Super Fund.
The fund's members were business partners - a business man and woman who fell out.
The businessman wanted out and asked for his money. He was removed as a director of the corporate trustee and hence the fund ceased to be a SMSF.
The fund agreed with the Tax Office that it would pay the benefit to the departing member and do all it could to receive unpaid unit trust distributions which were owed to it
The business partners have been engaged in a great deal of litigation since the fell out in 2004. Some of this legal action stems from the fact that a property owned by a related unit trust was incorrectly registered in the business man's name. He said he would fix this but didn't seem in any great hurry to complete this task.
There is much more that could be said but clearly it was a mess. At the time of writing the Court hadn't made a decision about costs.
You can read the Court case here: http://www.austlii.edu.au/au/cases/cth/FCA/2012/120.html
Here is a clear sign of what can happen when SMSFs can become too complex for their own good.
More about this case in future articles.
Version 6.0 of my SMSF book is now available.
You can see all the changes that have been made between Version 5.1 and 6.0 (the latest edition).
You can look at the contents page at the following link: http://www.atcbiz.com.au/r.php?r=0mjd6ne
For details of the changes made from version 5 to version 6 visit: http://www.atcbiz.com.au/r.php?r=d5xcpch
As you'll see from the list there have been many changes.
Two purchase options are available - once only subscription - $55 inc GST - or an annual subscription will gives you access to all the updates made throughout the year ($120 inc GST). The book can be purchased at the following link: http://www.atcbiz.com.au/r.php?r=5a4agqb
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