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Non-commercial LRBA loans must be put on commercial terms for the entire 2016 income year

Non-commercial LRBA loans must be put on commercial terms for the entire 2016 income year

In December 2015 The Australian Taxation Office (ATO) stated that it would not take active steps to review non-commercial limited recourse borrowing arrangement (LRBA) loans prior to 30 June 2016.  It was recommended that LRBA loans should be put on arm’s length terms by 30 June 2016. If that occurred then the ATO had stated that it would not actively review such non-commercial LRBAs for prior years.

Has new SMSF penalty regime allowed the Courts to adopt a lenient approach to serious breaches of SIS?

Has new SMSF penalty regime allowed the Courts to adopt a lenient approach to serious breaches of SIS?

The new penalty regime for self-managed superannuation funds (SMSFs) may allow a relatively lenient approach where cases involve a number of serious breaches of the Superannuation Industry (Supervision) Act 1993 (SIS Act) , if the two recent Federal Court decisions of DCT v Lyons and DCT v Graham Family Superannuation Pty Ltd are any guide to how the regime will be applied by the Courts.