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Super fund transferred shares to individual account . Off market transfer forms were prepared with purchase date as at 1 Feb 2023 . However forms were signed on 30 April 2023 . Accountant prepared the CGT date as at 1 Feb 2023 with consideration .
Shares were transferred on 10th of May 2023 . I asked client why it took so long to sign and transfer the shares . Broker advised they can back date 3 months for the share price....
Not sure if this can apply . I always check the signed form and market price as at the date .
Please advise this
Hi Monica
My understanding has been that the 90 day rule was in relation to having 90 days to pay stamp duty on the transfer of listed shares in the past. The stamp duty on transfer of listed shares has not applied for many years so my view is that the 90 day rule does not apply in your example.
The contract date is what should be used to determine the value of the shares and the off market transfer form signing date should be the date that the contract was signed. Under setction 109 of SIS the shares have to be transferred at a market value being the date of the contract and as a result the value at 30 April 2023 (being the date the off market transfer forms were signed).
I do note that it was proposed several years ago that SMSF's (as part of the Cooper review) should not be able to transfer shares from / or to a related party as an off market transfer due to the view that the price could be manipulated under a 90 day type rule. This proposal did not proceed.
It would be great to get other forum members view on this issue.
Thanks
THE AUDITORS INSTITUTE