Hi Phương
I assume the trustee of the bare trust is also a company and that a separate company is trustee of the SMSF having replaced the individuals as trustees.
If the trustee at settlement is a company the bare trust deed should refer to this entity as the beneficiary as trustee for (ATF) the SMSF. If the company is not listed as trustee you would in my view have a breach of section 67A(c) of SIS that requires:
“the RSF trustee has a right to acquire legal ownership of the acquirable asset by making one or more payments after acquiring the beneficial interest”.
You should check with the bare trust deed provider if a new bare trust deed is required or if the one prepared can be manually amended and initialed.
If other forum members have a view please let the forum know.
Thanks
The Auditors Institute