Avoiding the SMSF Danger Zone
Peter Johnson highlights the complexities that arise from historical issues in SMSF trust deeds and provides practical strategies to address these challenges. […]
Acis, current as of: 4 February 2016.
This is a question we hear frequently.
Unfortunately there’s not a one-size-fits-all answer, as the period for which you or your clients must retain business records or document depends on what they are.
Most people, when asked, will reply that you should retain documentation for at least seven years. This appears to relate to the principle of corporate law that requires a company’s financial records be retained for seven years after the completion of the transactions they record.
But that’s not the whole story.
As a general rule, the period of seven years seems to work because it exceeds the period required in cases such as:
While there is no obligation to retain documents in relation to limitation periods, an action that relies on those documents may fail if they are not retained.
Where the seven year guideline becomes an issue is where there are exceptions, including:
Of course, there are a number of practical considerations to take into account when deciding on a retention policy including:
With many businesses attempting to go paperless, this can be a difficult subject to deal with in practice. Please contact the Acis team on 1800 773 477 if you need assistance or would like to discuss any of these issues.
Peter Johnson highlights the complexities that arise from historical issues in SMSF trust deeds and provides practical strategies to address these challenges. […]
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