Issue: 404
Sent: 27-07-2010 10:18:10
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ATO SMSF documentation
Tony Negline
Two issues this week stemming from Tax Office announcements:
1. A few weeks ago I referred to an imminent draft tax ruling and draft SMSF ruling on pensions.
Last month we were told that both documents would be released this week.
However we are now being told that the draft tax ruling will not appear until late October this year. The draft SMSF ruling seems to have slipped off the radar and I'm yet to determine why.
2. One another note the ATO have issued an Interpretative Decision about the ability of court appointed administrators of a plenary estate of a person with a mental disability to be a trustee of a SMSF.
Unsurprisingly the ATO say that this court appointed administrator will be the mentally disabled individual's legal personal representative and as a result the administrator can be appointed as the trustee in place of the member.
The situation discussed in the ATO ID talks about individual trustees. The fund in question has three members. One of those members had the mental incapacity.
The ID indirectly shows, if it really needed to be demonstrated again, the benefit of using a corporate trustee.
Given that you can set up a corporate trustee for a fairly modest set up fee and ASIC provides a low annual registration fee, I find it somewhat surprising that according to ATO stats the vast majority of SMSFs being set up these days have individual trustees.
I have written about this subject in December 2008. You can review that article here: http://www.atcbiz.com.au/r.php?r=s5wx2uk
I hope you find many of the arguments still valid.
The ATO ID I referred to above is also worthwhile reading. You can review its contents here: http://www.atcbiz.com.au/r.php?r=ac50afe
Finally please consider purchasing a copy of my book. You can look at the contents page at the following link: http://www.atcbiz.com.au/r.php?r=0mjd6ne
The second edition has just been released.
Two 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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