Discussion in 'Accounting, Tax & Legal' started by ActiveTrade, 24th Nov, 2008.
Hi all, just wandering if one's SMSF can purchase private shares ?
Do you mean shares in a private company ?
Yes. I currently hold shares in a private company. Plans are for the company to float at some point. Not yet.
Yes and no.
Yes, if it's consistent with your investment strategy.
No if it's from you or another related party of the super fund trustee (which you post suggests)
you fall below the 5% in-house asset test
Unfortunately, unlisted shares do not fall within the in-specie transfer exemptions from related parties, unlike listed shares and interests in managed funds.
Potential penalty is a year in jail...
Fund stuff this super eh? Please seek specialist advice on all proposed transactions involving super. The consequences of rendering your fund non-compliant can be catastrophic from a tax perspective (and you might do time in the big house...)
Separate names with a comma.