Issue

When the total amount of the distribution events for a security, for a given financial year, match the distribution Tax Statement, Class will auto-populate the Trust Income Schedule based on the figures reported in the distribution Tax Statement.

However, when the distribution events don't equal the distribution tax statement for a given financial year Class will make an adjustment when auto-populating to always reconcile back to the figure reported in the distribution events. This may result in a combination of the distribution events and the distribution Tax Statement used to auto-populate the Trust Income Schedule. 

Resolution

The three scenarios documented below help to understand the interactions between distribution events and distribution tax statement and how Class auto-populates the Trust Income Schedule (TIS):

Scenario 1 - Figures in Distribution event equal figures in Distribution Tax Statement

Scenario 2 - Figures in Distribution event exceed figures in Distribution Tax Statement

Scenario 3 - Figures in Distribution Tax Statement exceed figures in Distribution event

Scenario 1

Details - Figures in Distribution event equal figures in Distribution Tax Statement 

Outcome - TIS auto-populates based on Distribution Tax Statement fields only

Example -

• On 01/12/2023 Distribution cash received by an SMSF/Trust $350
• On 30/06/2024 Distribution Tax Statement (Annual Tax Statement) processed as $350 with Dividend Franked $100, Franking Credit $22.86, Discounted Capital Gain Domestic $200 and Tax Deferred Amounts $50.
  
  The Trust Income Schedule will be auto-populated with
• Label U Franked Distribution (inclusive of Franking Credit) around-down to nearest dollar $122.
• Label D Franking credit $22.86
• Label F Capital Gains $200
• Label F1 Gross capital gain $200

Non-Assessable Amounts in the Tax Statement i.e. Tax Exempted, Tax Free, Tax Deferred, Capital Returns and AMIT Cost Base are not reportable fields in the Trust Income Schedule.

Where there are multiple Distribution Tax Statements for a security for a given FY, the Trust Income Schedule will display as an aggregated value for each components. E.g. When there are two Distribution Tax Statements with $100 and $80 both Dividend Franked components. The Trust Income Schedule will Display $180 at label U.

This is the simplest scenario. To check the figures in the distribution match the figures in the distribution tax statement navigate to Reports > Exception Report and check Distributions – Processing of Tax Statements and check that no reconciliation warning appears for the security about the Distribution Tax Statement not equaling the Distribution event.

Scenario 2

Details - Figures in Distribution event exceed figures in Distribution Tax Statement. This includes scenario when no Distribution Tax Statement has been entered.

Outcome - TIS auto-populates based on the Distribution Tax Statement (if entered) however the excess amount of the distribution event is recorded as a positive figure at label B (Non Primary Production income) in the Trust Income Schedule.

Example - 

• On 01/12/2023 Distribution cash received by an SMSF/Trust $350
• No Distribution Tax Statement processed
• Variance between Distribution event $350 and Distribution Tax Statement $0 is positive $350 ($350-$0)
  
  The Trust Income Schedule will be auto-populated with
• Label B Non-primary production $350 i.e. variance between Distribution event and Distribution Tax Statement where figures in Distribution event exceed figures in Distribution Tax Statement

Example - 

• On 01/12/2023 Distribution cash received by an SMSF/Trust $350
• On 30/06/2024 Distribution Tax Statement processed as $300 as Foreign Interest Income
• Variance between Distribution event $350 and Distribution Tax Statement $300 is positive $50 ($350-$300)
  
  The Trust Income Schedule will be auto-populated with
• Label H Other assessable foreign source income $300
• Label B Non-primary production positive $50 i.e. variance between Distribution event and Distribution Tax Statement where figures in Distribution event exceed figures in Distribution Tax Statement

Scenario 3

Details - Figures in the Distribution Tax Statement exceed figures in the distribution event. 

Outcome - TIS auto-populates based on the Distribution Tax Statement however the shortfall amount of the distribution event is recorded as a negative figure at label B (Non Primary Production income) in the Trust Income Schedule.

Example -

• On 01/12/2023 Distribution cash received by an SMSF/Trust $150
• On 30/06/2024 Distribution cash received by an SMSF/Trust $150
• On 30/06/2024 Distribution Tax Statement processed as $350 as Foreign Interest Income
• Variance between Distribution event $300 and Distribution Tax Statement $350 is negative -$50 ($300-$350)
  
  The Trust Income Schedule will be auto-populated with
• Label H Other assessable foreign source income $350
• Label B Non-primary production negative -$50 i.e. variance between Distribution event and Distribution Tax Statement where figures in the Distribution Tax Statement exceed figures in the distribution event