ATO will not appeal DomaCom SMSF ruling
The Australian Tax Office (ATO) has informed fractional property investing company, DomaCom, that it will not be applying for special leave to appeal the recent Federal Court decision regarding an investment by a self-managed superannuation fund (SMSF) in units in a DomaCom sub-fund.
The Fed Court said DomaCom did not breach the Sole Purpose Test as a result of the daughter of the SMSF member becoming a tenant of the underlying property in the circumstances described in the reasons of the Full Federal Court in August.
Commenting on it, DomaCom’s chief executive, Arthur Naoumidis, said allowing superannuation to help address the housing affordability crisis affecting many Australians was a milestone.
“DomaCom will now focus on addressing the remaining related trust issues identified by the Full Federal Court by reviewing our constitution and disclosure documents to address these items with respect to future sub-funds,” he said.
In September, DomaCom was forced to back down after differing interpretations of the High Court Rules 2004 left it open for the ATO to lodge leave to appeal to the HIGH Court.
The company said, at that time, that the legal action had concluded on the basis that the ATO had until 7 September to file an application for special leave to appeal to the High Court and as the ATO had not done so, DomaCom presumed the matter closed.
Recommended for you
In the latest Meet the Manager profile, Money Management speaks with Michael Skinner, founder and managing director at Blackwattle Investment Partners.
Perpetual has seen AUM rise 6 per cent in the last quarter but the departure of a longstanding JOHCM fund manager led to outflows of $2.2 billion from his strategy.
Global fixed income fund Bentham Global Opportunities has been added to several major platforms, enabling it to be accessed more easily by financial advisers.
Following yesterday’s news about First Sentier Investors closing four investment teams, a second global asset manager has announced it is closing its only dedicated Australian fund.
