#9876
Anonymous
Participant

    Thank you for your prompt helpful and supportive response. I just need to make clear that the retired (widow) members account reports an “in specie transfer -share ” -not a death just a lump sum benefit as part of winding it up. The member is the sole director of the Trustee Company and has signed a declaration that on 30 June 2022 an in specie share transfer to me has been recorded at a share market value of $ xxxxxx for the purposes of the proposed wind up of the …SMSF.” The parcel of shares were never successfully transferred from the individual trustees to the corporate trustee but as said the last dividend statements show they are SMSF assets. (with late xyz and Mrs as trustees) I m quite concerned that according to the Accountant dividends were received in the 2023 year (and continue to be paid the SMSF bank account) despite this declaration and are proposed to be presented as “drawings or benefit payments ” in the potentiallly final FS for 2023. The Accountant proposes to close the bank accounts so that dividends are no longer received but obviously ATO will still have the SMSF on record so even if the member declares the dividends personally there is an ongoing issue. What happens when the member passes away ? The problem will compound and a beneficiary could query why the matter was not resolved. I believe an auditor could be held to be negligent in not drawing attention to the absence of evidence of the transfer to the member. Even if the Corporate Trustee makes an assurance that the transfers have been or will be performed, 52 B 2 d still appears to be an issue. Should the Accountant/Tax Agent amend the FS and TR22 to keep the parcel of shares as an asset and keep the SMSF running until or unless the transfers are effected ? OR could an auditor accept an assurance/declaration by the Trustee/member that they have taken steps to transfer the shares from the Late Mr and Mrs as Trustees for XYZ SMSF to the Corporate Trustee for the SMSF and THEN to the name of the personal member ? — It may never happen ! The Accountant prefers not to amernd the FS 22 obviously. Thank you for your view and guidance !

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