e-Guide - SMSFs and Residency Issues

$15.00

Peter Townsend

Chinese investor Kash Mai Chek arrives in Australia, sets up an SMSF, makes the maximum allowable concessional contribution to the fund, buys a couple of properties using borrowed funds, appoints an enduring attorney and then returns to Shanghai happy in the knowledge that if the properties are held until he retires there should be no or little Australian tax on the sale proceeds. The Australian taxpayer seems to be effectively bankrolling the retirement of a national from another country. Is this scenario possible? If not, what would have to change for it to work? Is the issue of non-resident SMSF members fully understood by the advice profession?