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thinking of setting up a smsf have questions

Discussion in 'Superannuation, SMSF & Personal Insurance' started by gregm1111, 24th Jun, 2015.

  1. gregm1111

    gregm1111 New Member

    Joined:
    24th Jun, 2015
    Posts:
    1
    Location:
    sydney
    Hi. i just signed up to this forum fyi i haven't setup a smsf yet, asking questions
    before i do setup a smsf and find myself in trouble with the ato.

    i have some questions but i don't know who i ask in the finance industry to get the answers.

    thinking of trading forex and stock with my own smsf

    accounts would be with australian brokers.

    question is, regarding the forex part.
    i get my advice from a company outside australia, who get paid for their services via paypal
    i found out from the ato that smsfs can't have credit cards.

    am i allowed to pay for their service on my own personal credit card and then get the smsf to refund me?
    i am also aware you can link bank accounts to paypal, but i would prefer not to link a smsf bank account to paypal

    am i allowed to link a prepaid reloadable credit card to a smsf to pay for services? ( i have a prepaid reloadable card that you charge up with your own money from woolworths(safeway) big w and then you can use it like a normal credit card but its your own money not someone elses money.

    last question who do i talk to about these questions to get the right advice so i am on the right side of the ato

    also i have being reading up on if you get a tax auditor to do your smsf and the tax auditor them selves make a mistake the trustee of the smsf is liable not the tax auditor if the tax auditor made a mistake would the ato give you a chance to pay for another tax auditor to fix the problem??

    thks
    greg
     
  2. Christianrenel

    Christianrenel Active Member

    Joined:
    13th Jan, 2015
    Posts:
    31
    Location:
    Sydney
    SMSF Advice

    Hi GregM111,

    We can help with SMSF advice for fund, we are Self Licensed Business Financial Planning firm which helps many clients with SMSF on investments and strategy.

    We will be able to help with the questions on Forex trading and compliance.


    Kind Regards


    christianrenel


    christianrenel@pricefinancial.com.au
     
  3. jorgon

    jorgon Active Member

    Joined:
    28th May, 2011
    Posts:
    25
    Location:
    Brisbane
    Hi Greg

    The principle here is that an SMSF is unable to borrow, hence an SMSF cannot hold a credit card. A prepaid card or a Paypal account would be perfectly ok.

    Any ongoing payment and reimbursement arrangement would need to be carefully planned. You have to watch out for the rule against the fund "borrowing", you have to understand the sole purpose test and also the rule that a payment made on behalf of the fund (and not reimbursed) will be treated as a contribution to the fund. See ATO Self Managed Superannuation Fund Ruling SMSFR 2008/2, Self Managed Superannuation Fund Ruling SMSFR 2009/2 and ATO Taxation Ruling 2010/1 for an examination of these issues.

    Re: the tax auditor point, you as trustee/member of the fund have ultimate responsibility. It is up to you to make sure the fund operates properly. Advice is available, but it is not always correct.

    Cheers

    Jeremy