Hi all,
I am aware that SMSF is prohibited lend to related party and Auditor will report contravention.
But it happened.
I'd like to know what the required action to rectify this contravention is, beside return the money.
Does related party need to pay interest? and at what rate for an unsecured loan?
Much appreciated,
SMSF is prohibited lend to related party
If loan is to member, then prohibited
If loan is to associated company or trust, then limited to 5%
Does related party need to pay interest?
Yes - and there should be a loan agreement.
There is no set interest rate, but the LRBA rate would be a guide.
SMSF is prohibited lend to related party
If loan is to member, then prohibited
If loan is to associated company or trust, then limited to 5%
Does related party need to pay interest?
Yes - and there should be a loan agreement.
There is no set interest rate, but the LRBA rate would be a guide.
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