Issue

When Hub24 tax statements data were uploaded to Class Super in early October 2023, we identified that the "Gross Up Capital Gain - Discounted Method" values were incorrectly appearing as zero for certain funds. This led to the understatement of capital gains and associated tax payable.

How to fix this for a given fund on Class? 

Prerequisite

For SMSFs that have already performed the 30 June 2023 period updates, tax finalisation, or closed the financial year. These EOFY processing need to be rolled back and re-run.

The decision to amend the SMSF Annual Return should be evaluated on an individual basis. As a general guideline, an amendment is warranted whenever the tax implications are substantial enough to be considered material. 

Method 1 (Recommended)

Add the total discounted capital gain back against the security code with the largest missing value. This method ensures that the total distributed capital gain is correctly accounted for and taxed.

Considering the fund below as an example 

1. At the Browse event screen, click on the Distribution - Tax Statement event with the largest missing Grossed Up Capital Gains Discount Method
   
2. Click on Edit 
   
3. Enter the total missing grossed up capital gains discount method value in the Grossed Up Capital Gains Discount Method field, based on a provided spreadsheet by Class 
4. Click on Submit 
   

Method 2 

Create a custom holding account and record a tax-only entry for the missing gross up discounted capital gain amount.

Considering the fund below as an example

1. Create a custom holding account with default settings and activate it 
   
2. Create a Realised Accounting Gain/Loss business event by firstly selecting the custom holding account created in step 1 
3. Enter Effective Date of 30 June of the tax year, for example, 30/06/2023 
4. Enter the total missing grossed up capital gains discount method value in the Discountable Capital Gain field, based on a provided spreadsheet by Class 
5. Click on Submit 
   

Method 3

Manually adjust the Gross Up Capital Gain Discounted Method amount for each affected tax statement event, based on a provided spreadsheet by Class.