Author: Bruce4Tax(Taxicorn)Taxicorn 1 Aug 2021
We live in a duplex. The duplex next to us is owned by an ATO compliant SMSF and his daughter, son in law and grandson rent the place from the dad (who owns the SMSF). They've been renting for 14 years and paying way below market rent so this surely fails the sole purpose test of a SMSF.
How do you know all this as a fact?
If the SMSF has individual trustees, then a property search will not show the SMSF.
If trustee is a special purpose company (ASIC search), and shows as owner on the property search, then safe to conclude that the property is an asset of a SMSF.
If true, then definitely a breach - but need to very sure of what you are saying.
Thanks for the reply.
I've got the strata title documents for his property stating the Superannuation company name with ABN (along side the owner's name). In his strata correspondance with us he signs off his email with on behalf of XX Superannuation Fund with an abn. This company name shows in an abn search & Super fund look up as an ATO regulationed Self-Managed Superannuation Fund. I know the daughter is renting from her dad and has told me previously the very low rent amount they are paying.
ASIC business search is under maintainence at the moment. Anywhere else I should be searching? And if this is an asset of SMSF like I suspect (but am an amateur in this field) where do I report it?
Author: JodieR_ATO(Community Support)Community Support 9 Aug 2021
Hi @alstfun_mum,
The tip off form would still advise us there is a potential compliance breach of the SMSF. We still regulate SMSF's and the information would be directed to the relevant dept'.
If the fund was self reporting a contravention via voluntary disclosure, the information is available on our website.
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