The trustee of my SMSF is a corporation that is also the trustee of my family trust. The trustee does not derive business income.
This year the trustee apportioned its costs between the family trust and the fund. However the auditor of the fund informed me that it cannot be done because of the Sole Purpose Test. He then added that according to the law the trustee can not be remunerated for his services.
I opinionated that the trustee should be able to do that because:
1- The costs were necessary and by no means excessive and the fact that they were based on an apportionment of the total costs of the trustee it was to the advantage of the members of the fund rather than to their detriment, this because most of the costs were fixed costs rather than variable costs.
2- That in my opinion the term not to be remunerated should be read as meaning not to derive a financial gain, something that can only occur when receipts exceed payments, and that therefore the trustee should be entitled to the reimbursement of his expenses provided they were incurred in the discharging of his duties as trustee of the fund.
Is anybody in position to shine any light on this matter?
