This presentation provides an update on the ATO perspective and activity and status of the consultation paper.
The release of ATO’s LCR 2021/2 provides detailed guidance on the interaction between expenditure under a non-arm’s length arrangement and the effect this can have on the taxing of a fund’s income. This presentation drills down on the content of the ruling from an SMSF auditor’s perspective, including:
- When minor breaches can have a material impact
- The extent of auditor enquiry and testing expected from the ATO
- The future CGT implications when taking over the audit of a fund that has previously incurred non-arm’s length expenditure on an asset
- Possible interaction between in specie contributions and NALI/NALE
- ATO’s compliance approach to LCR 2021/2
- Practical examples where NALI and NALE can have a material impact on the financial results of a fund
- What is the state of play now that we have the consultation paper on ‘general expenses’?