Issue

How to process partial segregation for property stamp duty in Class

Resolution

Step 1: Update the asset pool structure to achieve partial segregation for property

Navigate to the Fund level > Investments > Maintain Asset Pools

1. Assign the assets or pool of assets to the nominated pension account
2. Set the Fund Policy to "Use assets segregated for pension purposes" and run the period update for the year

Step 2: Calculate the exempt income percentage on the segregated asset

1. Run a Statement of Taxable Income report and locate the total ECPI from the segregated asset pool.
2. Obtain an actuarial certificate percentage that separates out the segregated asset(s).
   Your actuarial provider should be able to do this. 
3. Calculate a revise exempt income percentage based on the above-provided percentage and the exempt income percentage on the segregated asset(s). This is calculated using the following formula:
   

   [(assessable income - segregated assets income – assessable contributions ) * provided actuarial % + ECPI for segregated assets)] / (assessable income – assessable contributions)

Step 3: Calculate the portion of asset(s) to which the segregation method is not applied

1. Update the fund policy to include the above-revised percentage and not use the segregated method.
2. Rerun the period update. This will ensure current ECPI is calculated and reported on the annual return.

In the tax return, you will need to manually mark the method of determining the ECPI as "Both" in Section A Question 10. Strictly speaking, the unrealised gains/losses on the assets should also be separated as well, by adjusting the benefit allocation by navigating to the Fund level> Period update > View/Rollback  > Allocate Benefits to Members.