Issue

How to record a distribution - tax statement event in Class when there is a foreign income tax offset attached to capital gain derived from foreign assets, so that:

• Cash is still reconciled; and 
• The taxable amount is also reported correctly.

Resolution

The following example demonstrates how to resolve this issue.

Example Tax Statement

Notes from the Tax Statement: 

1. Capital gains distributed to non-residents may include both Australian and foreign capital gains; such gains continue to be exempt from Australian tax as they are not in relation to taxable Australian property. These capital gains are therefore labelled above as non-taxable Australian property (NTAP).
2. (Australians Only) The amount in the 'Gross Amount Taxable ($)' column needs to be multiplied by two and offset by any capital losses you may choose to apply before applying your appropriate discount concession (ie 50% for individuals and trusts and 33.3% for complying superannuation entities).
3. The CGT Concession Amount is the non-taxable amount of the Capital Gain. It may not be the same as the Discounted component because expenses are only allocated against taxable components. 

Navigate to Fund Level > Transactions > Fund Income > Distribution - Tax Statement

1. Enter the other components from the tax statement as per usual
2. Record the Total Foreign Income Tax Offsets (including the portion from foreign capital gains) in the Tax Credit field under foreign income
   
   Tax Credit (Foreign): $408.32 = $324.49 + $83.83 (from Foreign capital gain)
   
   
3. Reduce the Foreign Income by the amount of the Foreign Tax Credit attached to the capital gains
   
   Other Assessable Income (Foreign): $2,502.51 = $2,586.34 - $83.83
   
4. Record the Gross Taxable Amount for Capital Gain derived from foreign asset
   
   Discounted Capital Gain Foreign: $7,381.17
   Capital Gain Other Method Foreign: $96.01