Trust distributions
The next step in the process is necessary if your Fund is invested in Unit Trusts, Managed Funds, or other entities (such as ETFs and hybrid shares) that pay Trust Distributions and provide an end of year Distributions Tax Summary Statement. Completing the Trust Distributions table using the Tax Summary Statement provided by your fund enables Mclowd to correctly calculate your tax obligations and imputation credit entitlements on the returns on your Fund’s investments in these entities.
Be aware that errors or omissions in completing this table may result in an incorrect calculation of your Fund’s tax liability, causing you to overpay or to understate your Fund’s taxable income.
The table below is a broad guide only, to assist Mclowd users to understand how tax is calculated on Trust Distributions and to verify that they are reporting all income and claiming tax credits appropriately.
As the format of statements supplied by different funds and trusts varies, it may be difficult to correctly interpret the data and match information to the columns in Mclowd. Most Tax Summary Statements are written using terms relating to an individual’s income tax return. They also generally include the individual tax return label code.
Mclowd developers have endeavoured to label columns to make the process as intuitive as possible, but trustees may need professional assistance to ensure this form is correctly completed. The following table may assist you deciding where to put some figures from these Tax Summary Statements. You may need to add some figures together especially relating to “(a) Australian Taxable Income Cash Distribution (Net of Tax).
Mclowd partners offer a low-cost service to Trustees who need assistance with this process. You can find a professional to assist in the Mclowd Marketplace.
Look carefully at the statement provided to you by the Fund or Trust. You may need to scan down or check additional pages for correct detailed figures. Some entities provide detailed notes to assist interpretation of statements. You may find helpful notes on entity websites (e.g. AMP Capital provides a detailed explanation).
Some working examples are provided in this manual.
Be sure to complete a row in the Trust Distributions Table for each entity listed in the drop-down list that appears when you click the down arrow.
Mclowd requires you to insert figures in columns A through J and in column M. Please refer below for details of data required in each column.
| Column Label | Data to Enter |
|---|---|
| A | AUSTRALIAN TAXABLE INCOME CASH DISTRIBUTION (NET OF TAX) Share of Net Income from Trusts (less net capital gains, foreign income) (13U) Franked distributions from trusts (13C) Non-primary production income which may include unfranked dividends and interest. (13U) Other deductions relating to non-primary production income (13Y) – you subtract this from the balance Examples of tax return code labels could include 11C, 11S, 13C,13U, 13R or 13Y |
| B | IMPUTED CREDITS Franking or imputation credits usually related to franked distributions. The tax return code could be 11U or 13Q |
| C | TFN CREDITS The share of any Tax withheld from the managed fund income where a TFN was not quoted. The tax return code of 13R may be included here |
| D | FOREIGN INCOME (NET OF TAX) Assessable foreign source income or other net foreign source income (20E or 20M) If the same figure is included at both 20E and 20M, you only need to record it once. You do not add them together |
| E | TAX FREE CGT concession amounts The Annual Tax Statement may refer to some items as “non assessable”. There would be no tax return label codes against these items |
| F | TAX EXEMPT The Annual Tax Statement would clearly identify this as “tax exempt income”. Again, there would be no tax return codes against these items |
| G | TAX DEFERRED The Annual Tax Statement would clearly identify this as “tax deferred income”. Again, there would be no tax return codes against these items |
| H | INDEXED CAPITAL GAINS (see Capital gains below) Capital gains – indexation method TAP Capital gains – indexation method NTAP |
| I | DISCOUNTED CAPITAL GAINS (see Capital gains below) Capital gains – discounted method TAP Capital gains – discounted method NTAP |
| J | OTHER CAPITAL GAINS (see Capital gains below) Capital gains – Other method TAP Capital gains – Other method NTAP |
| K | TOTAL INCOME (CASH DISTRIBUTION) Mclowd will automatically calculate this |
| L | GROSS TRUST DISTRIBUTION Mclowd will automatically calculate this |
| M | INCLUDED FOREIGN TAX CREDITS The Annual Tax statement may indicate that there was some foreign tax credits. Tax return label 20O is likely here |
Mclowd will add and display totals in columns K (Total Income – cash distributions) and L (gross distributions).