SMSF Setting up a company

Discussion in 'Accounting & Tax' started by MBowen, 22nd Nov, 2015.

Join Australia's most dynamic and respected property investment community
Tags:
  1. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

    Joined:
    18th Jun, 2015
    Posts:
    41,675
    Location:
    Australia wide
    Thanks Ivan

    Interesting that they say
    "Accountants can supply a trust deed prepared by lawyers and arrange to set up the SMSF, but they should not be drafting the documentation themselves unless also legally qualified."

    Carefully worded. A hairdresser could supply a deed prepared by lawyers.The deed is not the issue it is the legal advice that goes with establishing the trust that is the issue. If a non lawyer were to merely say 'sign here' then there would be no issue, but how can one set up a trust without legal advice - though I imagine it does happen.
     
  2. Redwood

    Redwood Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    691
    Location:
    Melbourne
    Cheers Terry - we have legal liability letters we have re provision of deeds from the lawyers we use (you know who they are).

    This topic deserves its own thread given the robust discussion here.

    It will be black and white come 1 July 2016 and interestingly only 78 licenses have been approved with only 204 being received. I am not sure how many accountants are out there - however most will have SMSFs on the books. Refer to ASIC already shadow shopping as deadline looms

    Cheers Ivan
     
    Terry_w likes this.
  3. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

    Joined:
    18th Jun, 2015
    Posts:
    41,675
    Location:
    Australia wide
    That is a good idea with the letter confirming that you are not advising on legal issues. Hope you get the client to sign off that this is the case.
     
  4. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    23,319
    Location:
    Sydney
    The issue with accountants or other non-licensed advice is the disclaimer which almost no accountants provide under the current exemption which is why it is to end :

    The advice constitutes financial product advice to a retail client and it includes, or is accompanied by, a written statement that:

    (A) the person providing the advice is not licensed to provide financial product advice under the Act; and

    (B) taxation is only one of the matters that must be considered when making a decision on a financial product; and

    (C) the client should consider taking advice from the holder of an Australian Financial Services Licence before making a decision on a financial product.
     
  5. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    23,319
    Location:
    Sydney
    I like the model we have. Our firm comprises a Financial Advisory Company (own AFSL and Dealer Lic) + Tax / Accounting. I call in the experts on financial planning and matters requiring licenced advice and they call me in for tax etc. Its very normal for clients to work with two advisers at times and we clearly communicate with each other.

    No point the FPs seeking a tax qualification as they cant possibly be a full blown specialist and likewise I don't see merits of me being dual qualified either. CPD would be horrid. I see merits of specialists working their respective talents rather than becoming a Master of none.