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Distribution Tax Automation

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Distribution Tax Automation simplifies the end of the year processing when entering your annual tax statements for listed trusts or managed funds. Simple Fund 360 reduces the hours spent manually entering tax components and automates the generation of distribution tax components which improves your ability to reconcile quickly and effectively.

Simple Fund 360 will pre-fill the per-unit value on the more commonly known listed trusts and managed funds. This is known as System Tax Data.

For any securities currently not supported, you will be able to enter Custom Tax Data that will help you create a template that can be used to automate tax data across your entire database. Please also see the Help us Improve section below for any securities you come across that are not currently automated.

Please note: 

We highly recommend you reconcile against your statement after using Distribution Tax Automation screen to prefill the components.

Navigation Features Supported Securities

Navigation

From the Main Toolbar, go to Home.
Navigate to Fund Workflow
Select a fund mceclip3.png
from the Main Menu select Compliance mceclip0.png
Select Distribution Tax Automation mceclip0.png

 

 

 

Post Accruals

Navigate to Compliance  mceclip1.png
Select Distribution Tax Automation mceclip3.png
Select Post Accruals mceclip14.png

Firstly Ensure all Bank/Cash receipts of distribution and distribution reinvestments have been processed.  

Select the Distribution(s) you wish to create the accrual journal. 

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Select Post Transaction

FAQs on Accruals 

1. How do you know the distributions that will be displayed in the Post Accruals List?

Simple Fund 360 will display all investment securities that have a linked income account to the 23800 accounts. 

2. Should we Generate Tax Data first before posting the accrual entry?

There is no specific order that needs to be followed.

3. How does Simple Fund 360 calculate the following amounts:

Label

Description

Accrual OB

Amount recorded to the distribution accruals / receivable account in the prior financial year

Reverse Accrual

The distribution accrual/receivable from the prior year has been cleared out in the current year

Net Cash Distribution

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mceclip0.png - No Distribution System Tax Data is available. Net cash is calculated based on total tax components entered in the 23800 accounts.

 

mceclip1.png- Net cash is calculated automatically based on the Distribution System Tax Data

 

mceclip2.png- Net cash is calculated automatically based on the Custom Tax Data user has set up

Bank Receipt / Reinvestment

Total amount recorded to the bank / reinvested for the investment in the current financial year

Accrual

Amount already recorded to the distribution accruals / receivable account in the current financial year

Year End Accrual (amount to be posted)

Amount to be posted to the distribution accruals/receivables account in the current financial year

Year End Accrual = (Accrual OB) + (Net Cash Distribution) – (Bank Receipt/ Reinvestment) – (Accrual)

 

4. How to reverse a distribution accrual that was processed?

Delete the posted journal from the Transaction screen.

5. Do you keep a history or record of which distribution accrual was processed?

Yes. The Distribution Event History will keep a record of all distribution accruals processed.

6. What journal will be posted? 

Debit: 61800/InvestmentCode.AX or 62000/InvestmentCode.AX 
Credit: 23800/InvestmentCode.AX

 

Help Us Improve

What happens if System Data doesn't pre-fill distribution details for a security?

You can help us pre-fill distribution data for commonly held securities by sending through Annual Tax Statements for securities held by five or more of the funds you manage. Please forward through these Annual Tax Statements to distributionstatements@bglcorp.com.au.

Uncommon/privately held securities

For less commonly/privately held securities, you have the option to either enter in custom tax data or enter in tax component amounts manually.

When sending through Tax Statements via email, please ensure that any sensitive personal information is removed/scrubbed from the Annual Tax statement itself.

In the email body, please tell us the fund that the Tax Statement relates to.

Please note the more tax statements you provide, the more accurate the tax components generated by Simple Fund 360 will be. For example, where two SMSFs hold the same investment, please send through statements for both SMSFs as this will allow us to increase the accuracy of our tax components data.

Email Template

To: distributionstatements@bglcorp.com.au

Subject:<FinancialYear><SecurityCode>

Distribution Tax Statement e.g. 2019-20 TCL Distribution Tax Statement

Fund name to which the statement relates.

 

Privacy of Data

BGL treats all data with the utmost privacy. BGL’s privacy policy can be found at BGL Privacy Policy [pdf].

Frequently Asked Questions.

What is the payment received amount? 

The Payment Received amount is the total income posted to 23800/InvestmentCode or 27000/InvestmentCode depending on the investment. 

How is the Net Cash Distribution calculated? 

The Net Cash Distribution is the total of the tax components entered against the income account and should reconcile with the payment received. 

Can I move a reviewed distribution back to incomplete?

Yes, Select the income account that you wish to update and select Mark as Incomplete.

How can I edit the transaction amount?

Transactions will need to be edited from the Transaction List. 

The Expand function is not displaying for one of my investments.

This is because no income has been posted to the linked income account.

Will custom data work across other funds with the same investment holdings.

Yes, Custom data works across your database.

Does BGL support system tax data before 2018-2019 year?

BGL mainly supports system tax data from 2019 year onwards. For selected securities, 2018 year system data is available as well. However, new securities will not be added for the 2018 year.

What do I do for securities I hold that are not currently supported with system data?

Please see Help Us Improve section.

Why is Distribution Tax Automation applying CGT discount at a rate of 50%?

The purpose of this CGT rate selection in the automation function is solely for the reconciliation of the tax component calculated and client tax statements. Most annual tax statements from managed and trust funds use 50% CGT rate. You have the option to choose between the 1/3 or 50% CGT discount rate. The calculation that flows through to the tax return is still based on 1/3 rate regardless of the CGT rate selected in the Tax Automation function.

What happens to distribution tax data that currently comes through data feed?

These will still come through as is. These are indicated with the feed icon. Tax data automation is still available for these investments. However please note investments held through wraps/platforms might have incorrect distribution component calculation.

How to process a distribution with a TFN Withheld amount?

Review the distribution and check against the Annual Tax Statement. If there is any TFN amount in the statement, you will need to manually add this component to the corresponding 23800 entry. Please note this data will not be available from the BGL System Data.

My Investment Income is not showing in the Distribution Tax Automation Screen?

Please check that the investment has units entered against the Investment Account. Example entity has an Unlisted Unit Trusts, ensure Control Account 78400 is set up as a Unitised Investment and Sub Account 78400/InvestmentCode has units entered.

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