ATO sets out view on Aussiegolfa case in Decision Impact Statement

The ATO has set out its view on the Sole Purpose Test and other implications of the Aussiegolfa Pty Ltd (Trustee) v. Federal Commissioner of Taxation case in a Decision Impact Statement.

Decision Impact Statements are a tool used by the ATO to advise the community on the views of the tax office following from a court or tribunal ruling.

The Aussiegolfa case, which was supported by listed company Domacom, involved questions of the Sole Purpose Test, sub-funds/related trusts and In-House assets. In short, the case revolved around leasing a residential property – held in a sub-fund – to a relative of a member of the SMSF. Read more...

Aussiegolfa case won’t be appealed to High Court by either side

Neither side of the Aussiegolfa case will appeal the recent Full Federal Court decision to the High Court. Though the ATO will set out its view of the implications of the case in a Decision Impact Statement, and may update an SMSF ruling.

According to an ATO spokesperson, the tax office has informed Aussiegolfa that the ATO Commissioner will not be seeking special leave to appeal the Full Federal Court decision, in Aussiegolfa Pty Ltd (Trustee) v Commissioner of Taxation [2018] FCAFC 122, to the High Court. Read more...

Domacom loses on in-house asset aspects of Federal Court appeal

Update: Neither the ATO or Aussiegolfa will appeal the case to the High Court.

Fractional investing company Domacom has lost on two out of three points in a Federal Court appeal which would have otherwise made it easier for SMSFs to buy property which could be leased to relatives.

The Federal Court has given its ruling in Aussiegolfa Pty Ltd (Trustee) v Commissioner of Taxation [2018] FCAFC 122. Aussiegolfia is the trustee company of the Benson Family Superannuation Fund, which has as its sole member an employee of Domacom. Read more...

Federal Court rules against DomaCom in SMSF related party case

Update (10/08/2018): Domacom loses on in-house asset aspects of Federal Court appeal

The Federal Court has ruled against DomaCom in its SMSF related party sub-fund case, the company has announced. DomaCom had been seeking a ruling saying that SMSFs could invest in DomaCom sub-funds owning properties that were leased to related parties.

“The Federal Court has indicated it will not make declarations that an SMSF can invest in a sub-fund that the SMSF and its related parties control if the sub-fund leases a residential property owned by the sub-fund to an SMSF member’s child,” said a statement from the company released to the market. Read more...

DomaCom supports Court action against ATO over in-house assets

A company is supporting action against the ATO in the Federal Court, seeking a ruling that its investments are not in-house assets.

DomaCom Australian Limited is supporting an action in the Federal Court for a declaration that the ‘DomaCom sub-funds’ are not in-house assets or related trusts for SIS Act purposes. The company is a subsidiary of ASX-listed company DomaCom Ltd, which describes itself as a “fractional investment fund manager”.

“The ruling would confirm that SMSFs can invest in property sub-funds where the tenant of the underlying property is a related party of the SMSF,” said an ASX announcement by the company. Read more...

ATO corrects record on DomaCom, SMSF renting property to relatives

DomaCom, SMSF, property, relatives, family members, first home buyers, in house assetThe ATO has set the record straight after it was reported that the rules around SMSFs renting property to the relative of a member may be relaxed.

DomaCom, which describes itself as a “fractional property investment platform”, released a ruling from the ATO, setting out the ATO’s view on if an investment by an SMSF in a DomaCom fund would meet the regulatory requirements. This ruling was then picked up by the media.

“Basically what it means is that for the first time, a parent can use their super fund to invest in a property with their son or daughter, and the son or daughter can then rent it,” DomaCom chief executive Arthur Naoumidis is quoted as saying by, in the article ‘Super hope for first home buyers’. Read more...