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More from the ATO on SMSF limited recourse borrowing arrangements

With greater certainty around the use of limited recourse borrowing arrangements within Self Managed Super Funds, the Australian Taxation Office (“ATO”) appears to be feverishly producing information and decisions in this area for trustees and professionals.

In the past couple of weeks, the ATO has issued ATO ID 2010/162 on arm’s length dealings for related party loan arrangements (see previous blog, “what interest rates can you charge your funds for a limited recourse loan?”). We have also recently seen the release of three further interpretative decisions dealing with loan arrangements under the “old” section 67(4A) requirements and the “new” section 67A & 67B laws.

These interpretative decisions are:

It is likely that we will see the ATO continue to release a range of interpretative decisions on this topic as more examples and issues of arrangements involving limited recourse borrowing comes to hand.

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