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Debra Rieniets

Jun 27, 2023

Shareholdings in the wrong name

in SMSF Technical Forum

The accountant has contacted me to advise that he has a new client with the fund's CommSec shareholdings in the wrong name. The fund has a corporate Trustee. The CommSec investments are held in the personal name of the Director/member. For the entirety of ownership, the Commsec account and all shareholdings have been identified and isolated for the exclusive control and benefit of the fund.

The accountant and I feel the Commsec account should be in the fund's name. The director/member is arranging for an 'off-market transfer', which we suspect will trigger Capital Gains consequences. Is there any better process available?

Thanks for sharing your comments and ideas.

I have not yet seen the accounts or have a concept of timelines.

8 comments

Comments (8)

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Dawood Hassan

Jun 28, 2023

I am currently facing a similar situation where an off-market transfer is feasible at a cost of $50 per share parcel. Any capital gains may be disregarded upon completion of the off-market transfer. However, it's important to note that the current position potentially breach s.52(2)(d) or R4.09A. To rectify the situation, the transfer needs to be made from my personal account to the trading account of the trustee company.

Dawood Hassan

Jun 28, 2023

Replying to

Interesting, will forward the feed back to the client.