Accountants told not to delay tax returns for related-party loans
Tax agents have been told it is unnecessary to hold up the lodgement of tax returns for clients with related-party loans who still need to make catch-up payments.
SuperConcepts general manager of technical services and education said the ATO released safe harbour parameters earlier this year to help trustees structure their related party loans so that the ATO will accept the LRBA as an arm’s length dealing.
The ATO then updated the deadline so that SMSF trustees have until the 31st of January to make catch-up payments and meet the parameters.
“If they haven’t made those catch-up payments by the time the tax return is lodged that’s okay, but you certainly want some confirmation that they intend to make those payments,” said Mr Burgess.
“Certainly make the trustee aware of the consequences if they don’t make those payments, but that’s not a reason in itself to hold up the 2015/16 tax return.”