Documentation to avoid NALI

by

Ed.

From www.smsfadviser.com: To avoid Non-Arm’s Length Income implications, thorough documentation of any contributions made to a Self-Managed Super Fund is essential.

The ATO’s interpretation of what constitutes a contribution has evolved, particularly regarding transfers of property at undervalue.

Legal documentation should clearly indicate the terms of such transactions to correctly classify them as contributions and prevent NALI tax consequences.

Filed under: Superannuation