653 paragraphs found
In order to determine whether the trustees have given effect to the investment strategy, the auditor assesses whether the investments made during the period are invested according to the documented investment strategy as approved by the trustees. Case law …
The auditor obtains evidence as to whether the trustees have reviewed or modified their investment strategy during the period to accommodate the SMSF’s changing needs and changes in the investment …
The frequency that a trustee should review the fund’s investment strategy in order to satisfy the requirements of regulation 4.09 of the SISR is not specified, and it is the role of the trustee to determine what is appropriate to meet the requirement. The …
The SISA [145] requires the trustees to ensure that the SMSF is maintained solely for one or more of the allowable core purposes and, in addition, may also be maintained for one or more of the allowable ancillary purposes. The allowable core purposes are …
The trustees of a SMSF are required to maintain the fund in a manner that complies with the sole purpose test at all times while the SMSF is in existence. This extends to all activities of the SMSF including: accepting contributions; acquiring and …
In assessing whether a SMSF has complied with the sole purpose test, the auditor may refer to the ATO’s Ruling SMSFR 2008/2 [147] on the application of the sole purpose test to circumstances where the SMSF is maintained for the purposes prescribed while …
In assuring compliance with the sole purpose test, the auditor looks for the provision of current day benefits, being benefits to a member or related party before the member’s retirement, employment termination or death, and assesses whether those …
Current day benefits are likely to fail the sole purpose test if the benefit: was negotiated or sought-out by the trustees; has influenced the decision making of the trustee; has been provided at a cost or financial detriment to the SMSF; and is part of a …
Current day benefits are more likely to comply with the sole purpose test if: the benefit is an inherent and unavoidable part of activities for allowable purposes; the benefit is remote, isolated or insignificant; the benefit is provided on arm’s length …
The sole purpose test is complemented by other restrictions in SISA relating to dealings with members and related parties, such as prohibitions or restrictions on: transactions not at arm’s length; [150] loans or financial assistance to members or …