SMSF Fundamentals Essential, yet so easily forgotten. Sean Dunne SSA Managing Director Dominium Capital Group 97618: _4

Transcription

1 Fundamentals Essential, yet s Sean Dunne SSA Managing Directr Dminium Capital Grup 97618: _4

2 CONTENTS Intrductin Cntributins Deductins Nn-arm s length incme Residency/Qualifying Trustee essential paperwrk Individual vs Crprate trustee Trust deed clauses Wh can be in a SMSF? Cnclusin Sean Dunne Dminium Capital Grup 97618: _4

3 Intrductin This paper is presented specifically t address sme f the fundamental, essential knwledge areas required fr trustees t prperly perate their SMSF. It is nt, by any means, presented as a fully cmprehensive guide twards the prper management f a fund; the facets discussed in this paper will nt prvide the trustee with a ttal guide twards ensuring cmplete cmpliance with their bligatins as trustees. Rather, this paper addresses specific gaps which emerge fr trustees and which, the authr hpes, will assist prfessinal services prviders and advisers with sme reminders and tls fr assisting trustees in meeting their bligatins, particularly cncerning sme fundamental areas f required knwledge in the field f SMSFs. Finally, in preparing this paper fr presentatin at the 2015 SMSF Assciatin Natinal Cnference, sme essentials have been disregarded. This was dne specifically in deference t ther papers being written and presented, by a range f ther authrs and prfessinal peers, which specifically and much mre cmprehensively delve int such areas as the sle purpse test, limited recurse brrwing arrangements, investment rules such as in-huse assets - and the list ges n. As such, the reader shuld bear in mind that any perceived gaps in this paper with regards t the essentials - have been deliberately mitted. 1. Accepting cntributins Cntributins Whilst it may seem bvius t prfessinal advisers, trustees may nt be aware f the rule surrunding their bligatins in accepting cntributins. Trustees are respnsible fr determining a member s eligibility t cntribute, and meeting bth: SIS requirements and the trust deed Types f cntributins: mandated emplyer nn-mandated persnal, c-cntributins, spuse Cntributin standards: age emplyment, 1

4 cntributin caps Anecdtally, the authr has been apprached a number f ccasins, by ther prfessinals, t assist in advising their client(s) abut what they (the client/trustee/member) can t d. Naturally, this means the trustee desn t necessarily understand what they are allwed t d. Cntributin standards reminder fr trustees: Member s Age Mandated Emplyer Cntributins Vluntary Emplyer Cntributins Persnal Member Cntributins Other Member Cntributins Under t under 70 - with wrk test - with wrk test - with wrk test 70 t under 75 - with wrk test - with wrk test 75 and ver Fund-capped cntributins limit SMSFs cannt accept single cntributins that exceed a member's fund-capped cntributin limit. If the member is: 65 years r ver but under 75 n 1 July f the financial year, the fund-capped cntributin limit is the nn-cncessinal cntributins cap fr that financial year. 64 years r under n 1 July f the financial year, the fund-capped cntributin limit is three times the nn-cncessinal cntributins cap fr that financial year. Fund-capped cntributins limit Des nt include: persnal cntributins where the member intends t claim an incme tax deductin. cntributins frm a structured settlement r persnal injury payment. super c-cntributins. 2

5 Cmmn prblem: Yu need t prperly dcument cntributins and rllvers including the amunt, type and breakdwn f cmpnents and allcate them t the fund members accunts within 28 days f the end f the mnth in which yu received them In-specie cntributins An in-specie cntributin is a cntributin in the frm f an asset ther than mney. It can be: Cncessinal r nn-cncessinal; r a cmbinatin f bth Typically (traditinally?) shares are transferred in this fashin, but we can als transfer real estate/prperty (bearing in mind any acquisitin f assets frm related parties rules and the in-huse assets test limits). Prperty is it becming mre cmmn? Prperty - independent valuatins are imprtant. Steps in administratin, when handling in-specie cntributins include: check the trust deed; check the investment strategy; think abut tax; calculate the stamp duty. We highlight the need t check the trust deed, as this again, smewhat anecdtally appears t be the ne thing trustees just dn t seem t pay attentin t. Trustees ften seem t be quite prficient in surcing investment ideas fr their fund, but rarely seem t take the truble t g back and check their trust deed (and ensure they understand what they can and cannt d with their new idea ). 1 Australian Taxatin Office Website, Retrieved 17 December 2014 frm 3

6 This is nt intended t be bradly disparaging f trustees abilities: it just seems t be an area where trustee attentin can smetimes been fund lacking. Of curse, such items as ptential Capital Gains Tax liabilities, and the like, need t be taken int accunt. Smewhat bviusly, ptential liabilities tday may, in fact, be utweighed by a lng-term benefit t the client(s) transferring an asset (r assets) t their SMSF. Each client s situatin will, naturally, vary. 2. Capital gains tax amunt Cntributins made frm certain amunts arising frm the dispsal f qualifying small business assets are exempt frm a member s nn-cncessinal cntributin cap, up t a lifetime limit f $1,355,000 (2014/15). Cntributins allwed under the cap include: up t $500,000 f capital gains that are disregarded under the small business capital gains tax (CGT) retirement exemptin, and; the capital prceeds frm the dispsal f assets that qualify fr the small business CGT 15-year exemptin. It is utside the scpe f this paper t discuss the small business CGT cncessins and bear in mind this is clearly an area f taxatin advice. But cnsider: Smetimes the CGT cncessins can be verlked by trustees, as they scramble t get assets int super as sn as they can. What if they culd hld the (active) asset fr a few mre years and be cmpletely exempted frm paying CGT? Fr mre infrmatin n the Small Business CGT Cncessins, check: 4

7 Deductins 1. Insurance plicies sectin ITAA 1997 Many trustees are aware f the ability t hld insurance thrugh their SMSF. Premium deductibility: Term life: 100% f premium Whle f life: 30% f premium Endwment: 10% f premium Incme prtectin: 100% f premium But, dn t frget that the deductibility f premiums, fr new insurance plicies frm 1 July 2014, can nly be claimed fr plicies meeting the SIS definitins fr a cnditin f release pertaining t death, terminal illness, permanent incapacity and temprary incapacity. Whilst prfessinal advisers wuld be aware f these rules, it is imprtant that trustees, t, ensure they are aware f these changes. 2. Insurance plicies Sectin ITAA 1997 deductins fr future liability t pay benefits This deductin is little knwn utside f prfessinal advice circles (dn t frget, by prfessinal advisers we mean qualified Financial Advisers/Planners, Accuntants, Lawyers and the like the term Prfessinal Adviser is being used as an all-encmpassing term here). If a trustee elects t use the prvisin under s , the deductin is calculated using the fllwing frmula: Benefit Amunt X (Future Service Days / Ttal Service Days) As a rule f thumb, fr members under the age f 65, the yunger the deceased, the mre beneficial (financially that is let s nt frget the member is either dead r suffering an illness r injury!) Naturally, if the deductin exceeds the amunt f assessable incme f the fund, the lss can be carried frward fr future years. 5

8 If this electin is made, the fund may nt be able t deduct future premiums fr ther members. It is imprtant t nte that the trustee(s) elect t use either sectin OR when claiming the deductin; nt bth. Interestingly, the authr ften gets asked hw this deductin impacts upn anti-detriment payments. It desn t. It is entirely separate and apart frm anti-detriment; if trustees can als claim a deductin fr paying an anti-detriment payment, then they can. Anti-detriment is nt discussed in this paper. In ther wrds, the trustees are entitled t claim bth, if they can, r s wish t. WORKED EXAMPLE Key Facts: Richard Dymck is married t Elsie. They have tw children, Harry (12 years ld) and Gergia (10 years ld). The have a SMSF The Dymck Family Superannuatin Fund. Richard and Elsie have a mrtgage and Richard is the primary breadwinner. In accunting fr their mrtgage, incme needs and future educatin needs, Richard has $1.5M life insurance cverage, which his Adviser has recmmended the Dymck Family Superannuatin wn. Richard is aged 43 and has a superannuatin member balance f $300,000 WORKED EXAMPLE Key Data: Premium fr Richard s plicy: $2,490 per annum Richard was brn n 1 July 1969 His eligible service date is: 1 July 1992 His 65 th birthday will ccur n: 1 July 2034 Richard died n 1 July As such, his Future Service Perid is: 7,305 days and his Ttal Service Perid is 15,341 days. WORKED EXAMPLE D the sums: Benefit Amunt X (Future Service Days / Ttal Service Days) = [Member Balance + Insurance Prceeds] X (Future Service Days / Ttal Service Days) = [$300,000+ $1,500,000] X (7305 / 15341) = $1,800,000 X (7305 / 15341) = $857,114 6

9 This is the deductin that the fund can claim this year (versus the premium amunt f $2,490). Be aware f this ptential deductin! It tends t be: Under-appreciated Nt understd This may be due t a general lack f awareness. This deductin can apply t disability payments, but generally needs t be carefully assessed against future deductibility (r nging premiums). As such, we have fcussed n utilising this deductin upn the death f a member. The significance f this deductin may be (financially psitively) dramatic fr a family unit, where children can be brught int the fund; remember, the fund can cntinue t carry frward lsses t ffset against incme. Nn-arm s length incme Key Pints: Nn-arm s length incme Is incme derived frm nn-arm s length transactins: such as private cmpany dividends, discretinary trust distributins Taxed at 47%: n use f imputatin credits (directly against nn-arm s length incme) Assessable nn-arm s length incme = nn-arm s length incme minus deductins relating exclusively t nn-arm s length incme In simple terms: There is basically a presumptin that incme frm private cmpanies and fixed unit trusts (nt widely held ie: related) is nn-arm s length incme. The nus is n the trustees t demnstrate that the incme is, in fact, arm s length. Put simply, the SMSF shuld have bught/acquired the shares/units in these entities at market rates (cmmercial terms), and the incme received frm hlding these share/units must the same, as that f any ther class f sharehlder/unithlder. Demnstrated histry f returns is helpful. 7

10 The authr was tld by clleague (many years ag nw) abut sme trustees wh thught they culd pay dividends frm their private cmpany, t their SMSF, because the SMSF is entitled t the dividend, but als didn t think they shuld have t pay the same dividend t themselves persnally (as the majrity sharehlders), because they didn t [persnally] need the dividend [incme]. The accuntant tld me he felt that they genuinely didn t understand that this culdn t be dne. Thankfully, they were advised apprpriately and their strategy didn t prceed. Obviusly, the prblem here was that all sharehlders shuld have received the same dividend (r rate f dividend), t ensure incme was arm s length. Finally: Incme frm discretinary trusts will be nn-arm s length incme. ATO website: In additin, incme frm investments that have nn-cmmercial cnditins fr example limited recurse brrwing arrangements with zer interest lans may als be cnsidered nn-arm's length incme. 2 See als: ATO ID 2014/40 Incme Tax: nn-arm's length incme - related party nn-cmmercial limited recurse brrwing arrangement t acquire real prperty Residency f the fund 1. Residency Status What is an Australian superannuatin fund? Fr an SMSF t be a cmplying superannuatin fund it must als meet the definitin f an Australian superannuatin fund in sectin f the Incme Tax Assessment Act 1997 (ITAA97). As such, a fund will be an Australian superannuatin fund if: the fund was established in Australia, r any asset f the fund is situated in Australia at establishment, and; the central management and cntrl f the fund is rdinarily in Australia, and; 2 Australian Taxatin Office Website, Retrieved 17 december 2014, frm 8

11 where the fund has active members, at least 50% f the assets f the fund (r amunts payable frm the fund) relate t active members wh are Australian residents. A cmmn questin arises, which is: Can the members/trustees reside utside f Australia? The legislatin states: T avid dubt, the central management and cntrl f a superannuatin fund is rdinarily in Australia at a time even if that central management and cntrl is temprarily utside Australia fr a perid f nt mre than 2 years. (subsectin (4) ITAA 1997) Trustees shuld be aware that intent is imprtant in this test. That is, if the member leaves tday and intends never t return t Australia, then they are basically deemed t have left Australia permanently - tday. Even if they have nly been gne fr a cuple f weeks, if they have made every effrt t permanently leave and this is their lng-term intent, then this wuld nt be cnsidered temprary. WORKED EXAMPLE (SOURCE: Kaplan Educatin Self Managed Superannuatin Funds - used with express permissin ) Jen & Barry have a SMSF with their 2 children, Peter & Simn. Jen s entitlement = $400,000 Barry s entitlement = $400,000 Peter s entitlement = $100,000 Simn s entitlement = $100,000 Jen & Barry have sld up and mved ffshre fr a lucrative emplyment cntract in Hng Kng. Simn and Peter remain in Australia and have SG emplyer cntributins ging int the fund. QUESTION: Can Jen and Barry make persnal cntributins int the SMSF whilst they are nnresidents? 9

12 ISSUES: Jen and Barry are nn-residents; they are als active members, as they are making cntributins. Als keep in mind what is their intent? The prprtin f the fund assets held by resident active members is insufficient, as a prprtin f the fund s assets attributable t ALL active (including nn-resident) members. $200,000/$1,000,000 = 20% Therefre, because the ttal value f the fund s assets, attributable t RESIDENT ACTIVE members, is less than 50%, the fund ceases t be an Australian superannuatin fund. Trustee essential paperwrk 1. Trustee Declaratin Trustees declare that they understand: Sle Purpse Trustee Duties Accepting Cntributins and Paying Benefits Investment Restrictins Administrative Requirements As such it is imprtant that they d understand their bligatins frm the beginning! What des this mean? It means that many ptential, future trustees might decide that they want t start their wn DIY super fund withut having critically cnsidered their bligatins; the trustee declares: If I d nt cmply with the legislatin, the Cmmissiner may take the fllwing actins: impse administrative penalties n me give me a written directin t rectify any cntraventins r undertake a curse f educatin 10

13 enter int agreements with me t rectify any cntraventins f the legislatin disqualify me frm being a trustee r directr f a crprate trustee f any superannuatin fund in the future remve the fund s cmplying status, which may result in significant adverse tax cnsequences fr the fund prsecute me under the law, which may result in fines r imprisnment. As such, it is clear that this piece f essential paperwrk be understd by trustees and retained fr future reference (up t 10 years). Additinally, and fr the purpses f this paper, we fcus n the administrative requirements that trustees must undertake; quite bviusly, this can be ne f the mre banal tpics fr trustees t cnsider! As such, it is relevant t review sme f the majr cmpnents f this particular facet f trustees essential paperwrk because it can be, quite frankly, ne f the less-interesting areas f attentin. 2. Administrative Requirements Administratin and Cmpliance: Majr cmpnents: Trustees are required t ldge an annual cmbined incme tax and regulatry return with the ATO (which includes member cntributins statement) An apprved auditr must cmplete bth: Financial audit Cmpliance audit Cmpliance includes ensuring regulatry deadlines/timeframes are als met. Examples f meeting cmpliance bligatins include: Appinting an apprved SMSF auditr each year, n later than 45 days befre the due date fr ldgement f the fund s annual return and prvide dcuments t the auditr as requested; Ldge the fund s annual return, cmpleted in its entirety, by the due date; 11

14 Ensure the fund des nt breach any investment restrictins (nt discussed in this paper); Ensure the fund meets the sle purpse test (nt discussed in this paper); Ntify the ATO within 28 days f any changes t the: membership f the fund, r trustees r directrs f the crprate trustee; name f the fund; cntact persn and their cntact details; pstal address, registered address r address fr service f ntices fr the fund. In simple terms, the trustee is respnsible fr ensuring they appint and use an apprved auditr. It is utside the scpe f this paper t discuss, at length, the details f the financial and cmpliance audits; trustees will nt undertake these tasks. What is imprtant t nte is that trustees must ensure that they meet their cmpliance bligatins, such as thse examples listed abve. Preparatin f financial statements will ften be utsurced t a fund administratr. Yu will nte that we have highlighted the need fr trustees t ensure they meet deadlines and timeframes ; this has been an area f attentin fr the ATO. 3. Recrd Keeping Recrd Keeping is an essential trustee requirement and certain paperwrk must be retained fr the purpses f being able t prvide these dcuments, n demand, t the regulatr. Trustees must keep and retain fr at least 10 years: minutes f all trustee meetings at which matters affecting the fund were cnsidered (this includes investment decisins and decisins t appint members and trustees) recrds f all changes f trustees, including directrs f the crprate trustee each trustee s cnsent t be appinted as a trustee f the fund r a directr f the crprate trustee all trustee declaratins cpies f all reprts given t members Trustees must als keep and retain fr at least 5 years: an annual statement f the financial psitin f the fund an annual perating statement 12

15 cpies f all annual returns ldged accunts and statements that accurately recrd and explain the transactins and financial psitin f the fund. 4. Trustee minutes Trustees must retain (fr 10 years) minutes f all trustee meetings at which matters affecting the fund were cnsidered (this includes investment decisins and decisins t appint members and trustees). ATO guidance: Yu shuld take minutes f all investment decisins, including: why a particular investment was chsen whether all trustees agreed with the decisin. If, as ne f the fund s trustees, yu invest the SMSF s mney in an investment that fails, the ther trustees culd take actin against yu fr failing t be diligent in yur duties. Hwever, if yur investment decisin was recrded in meeting minutes that were signed by the ther trustees, yu will have a recrd t shw the ther trustees agreed with yur actins. 3 This guidance, alne, sufficiently explains why minutes must be kept! 5. Valuatins Cnducting an independent valuatin may be prudent where: in-specie amunts are abut t be paid ut r cntributed t the fund, assets are sld t a related party, r assets are t frm part f the assets t supprt a pensin Be aware that auditrs may require a revaluatin. Auditrs are directed: 3 Australian Taxatin Office Website, retrieved 22 December 2014 frm 13

16 Where the trustee has undertaken the valuatin, assess whether the valuatin prcess used is fair and reasnable, was undertaken in gd faith using bjective and reliable data, is capable f explanatin t a third party and cmplies with the ATO guidelines [emphases added]. 4 Depending n the situatin, a market valuatin may be undertaken by ne f the fllwing: A registered valuer; A member f a recgnised prfessinal valuatin bdy; A Directr, fr balance sheet purpses; A persn withut frmal valuatin qualificatins whse assessment is based n reasnably bjective and supprtable data. 5 Crprate versus Individual Trustees 1. Can yu change? The simple answer t this questin is, typically, yes yu can. There are, hwever, sme general steps trustees shuld bserve, when cnsidering and executing a change f trustee structure. Bear in mind, t, that this questin almst always arises thrugh the trustees (and/r their advisers) cntemplating a change frm having an individual trustee structure, t a crprate trustee structure (and nt the ther way arund). We assume here that the reader understand the difference between the tw structures! The trustees need t cnsider sme f the fllwing steps nt necessarily exactly in the rder presented here when deciding n a change f trustee structure. 4 Auditing and Assurance Standards Bard, Guidance Statement GS Auditing Self-Managed Superannuatin Funds, September 2013, retrieved 24 January 2015 frm 5 Australian Taxatin Office Website, Retrieved 11 Nvember 2014 frm 14

17 Yu need t think abut the fllwing: Check the Trust Deed this step really must be yur first prt f call! Create a cmpany the Crprate Trustee Ntify The Australian Taxatin Office Bank Accunts/Brker Accunts/Fund Managers Prperty (Real Estate) Any ther legal dcuments/cntracts/leases The Trust Deed must be checked first, t ensure we can make this change. Des the deed allw fr a crprate trustee t be used and des the deed utline the prcess fr trustee resignatins? If the deed des nt allw fr this change, then we wuld nt be able t prceed (r, at least, nt withut having first amended the deed). Creating a cmpany is an bvius requirement! The authr wuld nt recmmend using an existing cmpany t act as trustee; what this means is that sme peple will cntemplate the use f an existing (family) cmpany trustee (fr example, acting as trustee fr a family discretinary trust) t perate as the trustee fr the SMSF. It is advisable t keep a clear line f demarcatin between the assets f the SMSF and any ther entity. The Australian Taxatin Office must be ntified within 28 days f the change ccurring. Trustees must then deal with issues such as having prperty titles changed, bank accunts changed (thugh it is smetimes easier r, even, mandated by the bank itself t pen a new accunt in the name f the new cmpany trustee; this ften happens with brker accunts, t). Lease agreements will als need t be changed, where the SMSF is leasing prperty t anther party. We wuld rdinarily advise a client t engage a lawyer t deal with prperty transfers and the legal requirements (fr transfer) vary frm state t state. 2. Shuld yu change which structure is better? The authr s view: crprate trustee is the way t g. This, f curse, is nt t say that it is the nly way t g. 15

18 Hwever, what a crprate trustee structure prvides is: Clearer segregatin f SMSF assets; Administratin efficiencies (principally due t a change in membership); Simpler trustee successin - a crprate trustee will cntinue in the event f a member's death. Additinally, a crprate trustee allws fr a single-member fund member t be the sle directr (and secretary) f the crprate trustee, negating any need fr a secnd individual trustee. Bear in mind, penalties fr breaching the superannuatin rules can be levied acrss all trustees where an individual trustee structure exists; that is, each individual trustee can have the same penalty levied n them, s if 4 trustees are in place, that can amunt t 4 times the penalties. With a crprate trustee, nly the cmpany itself will receive the penalty, meaning all directrs can split the cst f the penalty. Crprate trustees, hwever, are als subject t crpratins laws and regulatins and this means that there is anther regulatr invlved, being the Australian Securities and Investment Cmmissin. As such, trustees must ensure that they als cmply with the crpratins law and this is anther cnsideratin. On a final nte, it is clear that the trustee structure selected at the fund s establishment is an imprtant decisin and shuld be carefully cnsidered: it can be (and usually is) a smewhat painful exercise t change trustee structure dwnstream. It is much better and easier - t ensure the crrect decisin (and structure) is made in the first instance. In this case, the authr wuld usually recmmend establishing a crprate structure frm the utset, fr mst situatins encuntered. Trust Deed clauses what t lk fr. 1. The Trust Deed As stated thrughut this paper, examinatin f the trust deed must be the first cnsideratin when making any decisins regarding the fund. S, what s in a deed? Very bradly, the deed: 16

19 Establishes the rules f the fund Can have mre nerus requirements than SIS requirements Can be amended, but must fllw prcedures set in riginal deed fr making any amendments Changes resulting in reductins in entitlements require apprval by members r regulatrs Outlines hw member accunts will be calculated Cntains SIS Deemed Cvenants these cannt be disregarded/excluded This last pint highlights that we cannt disregard the deemed cvenants they are must haves. S, what are the deemed cvenants? Sectin 52 - SIS Act The Deemed Cvenants In essence, this means that trustees must: act hnestly in all matters affecting the entity, exercise a degree f care, skill and diligence as an rdinary prudent persn, act in the best interests f the beneficiaries, keep fund assets separate, nt t d anything that wuld impede the prper perfrmance and functin f pwers, frmulate and give effect t an investment strategy, manage reserves respnsibly, allw the beneficiaries access t certain infrmatin, d ther such acts as prescribed in the SIS Act cvenants. 6 Trustees shuld familiarise themselves with the deemed cvenants; frankly, they are selfexplanatry! 6 Superannuatin Industry (Supervisin) Act 1993, accessed at Cmlaw, Retrieved 11 Nvember 2014 frm 17

20 Wh can be in a SMSF? Basically, anyne can be a member f a SMSF, s lng as they are nt emplyed by anther member f the fund (with the exceptin f relatives ). A disqualified persn can NOT be a member. What this means is that the questin f wh can be a member is prbably mre apprpriately answered by understanding wh cannt be a member. If a disqualified persn can NOT be a member, then wh is a disqualified persn? Under sectin 120 f the SISA an individual is a disqualified persn by peratin f law where they have been/are: cnvicted f an ffence invlving dishnesty subject t a civil penalty rder an undischarged bankrupt, r disqualified by the Cmmissiner under sectin 126A f the SISA. T this last pint, the Cmmissiner may disqualify an individual under sectin 126A f the SISA where the: persn has cntravened the SISA r the Financial Sectr (Cllectin f Data) Act 2001, crprate trustee has cntravened the SISA r the FS Act and the individual was a respnsible fficer at the time f the cntraventin, r individual is therwise nt a 'fit and prper' persn (subsectin 126A(3) f the SISA). What abut crprate trustees? Hw des the peratin f a crprate trustee structure affect wh can be in a SMSF? SUPERANNUATION INDUSTRY (SUPERVISION) ACT SECT 120 Bdies crprate are disqualified if: (a) the bdy crprate knws, r has reasnable grunds t suspect, that a persn wh is, r is acting as, a respnsible fficer f the bdy crprate is: 18

21 (i) fr a persn wh is a disqualified persn nly because he r she was disqualified under sectin126h - disqualified frm being r acting as a respnsible fficer f the bdy crprate; r (ii) therwise - a disqualified persn; r (b) a receiver, r a receiver and manager, has been appinted in respect f prperty beneficially wned by the bdy; r (c) an administratr has been appinted in respect f the bdy; r (d) a prvisinal liquidatr has been appinted in respect f the bdy; r (e) the bdy has begun t be wund up. 7 As we can see, the rules fr bdies crprate are smewhat similar in nature t thse rules which are applied t individuals. Cnclusin It is clear, then, that sme f the requirements fr trustees t remember when perating their SMSF are nt necessarily difficult t implement r adhere t. Indeed, sme f these items tend t be frgtten, in the authr s persnal view, simply because they are nt particularly interesting r exciting! We wuld expect prfessinal advisers and service prviders t knw, understand and nt frget these matters; hwever, fr the trustees wh demand t be highly, particularly selfdirected, it is imprtant that these seemingly simple matters d nt get set aside, just because they are mundane r seemingly inncuus. They really are essential t the gd peratin f a SMSF. 7 Australasian Legal Infrmatin Institute Database, retrieved 18 Nvember 2014 frm 19