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Re: Starting business overseas using smsf

Newbie

Views 49

Replies 3

Hi Team,

 

I'm planning to start business overseas as a partner. So is it ok if I can use my SMSF account for investing? If yes, then can I reinvest my profit, instead of transferring back to my smsf account? Also, what else I have to do while processing my tax each financial year.

 

Thanks,

YS

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

Taxicorn Registered Tax Practitioner

Replies 0

Just want to know if we can invest in overseas business using my SMSF funds?

 

I'm planning to start business overseas as a partner. 

 

Lending to a partnership in which you are a partner, on commercial terms, may be possible up to 5% of fund value  -  but likely to breach other rules.

 

Using the fund's money to finance your own partnership equity, that would be taking SMSF funds for your own pivate purposes.

 

Potential breaches are:

1.  S 62  -  sole purpose test

2.  S 65  -  financial assistance to members

3.  S 82  -  in house assets ratio

4.  S 109  -  arm's length dealing

5.  R 8.02B  -  valuation of assets

 

3 REPLIES 3

Taxicorn Registered Tax Practitioner

Replies 2

I'm planning to start business overseas as a partner.

So is it ok if I can use my SMSF account for investing?

 

What does that mean exactly?

 

If yes, then can I reinvest my profit, instead of transferring back to my smsf account?

 

Reinvest where?

 

Also, what else I have to do while processing my tax each financial year.

 

That depends on the detail what what you wnt to do.

 

 

Newbie

Replies 1

Just want to know if we can invest in overseas business using my SMSF funds?

Most helpful response

Taxicorn Registered Tax Practitioner

Replies 0

Just want to know if we can invest in overseas business using my SMSF funds?

 

I'm planning to start business overseas as a partner. 

 

Lending to a partnership in which you are a partner, on commercial terms, may be possible up to 5% of fund value  -  but likely to breach other rules.

 

Using the fund's money to finance your own partnership equity, that would be taking SMSF funds for your own pivate purposes.

 

Potential breaches are:

1.  S 62  -  sole purpose test

2.  S 65  -  financial assistance to members

3.  S 82  -  in house assets ratio

4.  S 109  -  arm's length dealing

5.  R 8.02B  -  valuation of assets