On the SMSF Breach Front

The ATO has identified the following as the most commonly reported breaches of the SIS rules based upon reports made in the 2007/08 financial year:

• loans to members or relatives    (19.08%)
• breaches of the in-house asset rules (15.62%)
• assets not in the name of the fund   (13.56%)
• documents requested by auditors not provided (10.49%)
• breaches of the sole purpose test   (7.82%)
• borrowings by SMSFs for improper purposes   (7.34%)