thanks for the ATO ruling raddles
i take alot of comfort from the following paragraph…
Circumstances that do not result in a contravention of paragraph 65(1)(b)
17. Arrangements where an SMSF invests on commercial terms in an unassociated entity do not result in a contravention of paragraph 65(1)(b) if that unassociated entity, independently of the SMSF and in its own right and from its own resources, gives financial assistance to a member or member's relative.16
would appear to me that based on para 17, a loan to an unassociated entity (eg a third party) at a commercial interest rate, wherein the funds were subsequently on-lent to a member at a higher interest would not contravene 65(1)(b)?
do you agree?
