Non-commercial SMSF LRBA arrangements are high on the ATO’s radar.
Following the recent release of new guidelines and rulings it is essential that you review every related party LRBA held by your clients’ SMSFs.
The ATO have given until 31 January 2017 to ensure all affairs are in order.
We recommend that your reviews be undertaken well before Christmas so as to allow for any restructures to be finalised by this deadline.
Why is this important?
- It is on the ATO’s radar – they will review relevant SMSFs.
- The top marginal tax rate (instead of 15% or 0%) can apply to arrangements that fall foul of the non-commercial rules. Penalties and interest can also apply.
- The ATO will not take audit action for years prior to 1 July 2015 if trustees meet the 31 January 2017 deadline.
- Trustees will be relying on their accountants to ensure compliance.
How Can TriSuper Auditors assist?
We now offer a Review & Solve service for accountants and advisors on Related Party LRBA compliance – diagnosing any breaches and suggesting action plans to remedy them.
Specifically we will
- Review in detail the existing Related Party LRBA
- Compare the arrangement against requirements of section 109 of the Non-Arm’s Length Transaction (SIS Act) and Section 295-550 of the Non Arm’s Length Income (ITAA 97), taking into account ATO Guidelines PCG 2016/5 and TD 2016/6.
- Provide a diagnostic report on current compliance of the LRBA with Non Arm’s Length Rules and ATO Guidance.
Of course if you have any questions about the ATO’s new guidelines please feel free to contact me on 02 4961 2788.