The Futcher horse breeding business is owned and managed by Bob and Helen who are members of
Question:
The Futcher horse breeding business is owned and managed by Bob and Helen who are members of the Futcher SMSF, so they are related parties. The property has 10 hectares and on half a hectare of the property they have built a private residence in which they live. The breeding business has a breeding supply agreement with a local stud for the next 5 years. This agreement forms the basis of a business that is being conducted on the property. The Futcher SMSF acquires the property (not including the breeding supply agreement) from Robin and Jusy at its market value. Robin and Judy then lease the property from the SMSF. Is the acquisition of the property by Futcher SMSF from Robin and Judy contravene the related party acquisition rule in section 66?
Probability & Statistics for Engineers & Scientists
ISBN: 978-0130415295
7th Edition
Authors: Ronald E. Walpole, Raymond H. Myers, Sharon L. Myers, Keying