Parcel Allocation
Tax deferred amounts are applied to multiple parcels on a proportionate basis based on the number of shares/units in the parcel.
Tax deferred amounts are only applied to parcels held at the time of the distribution.
Example
A fund has two parcels of shares purchased in 2014. In the 2016 Financial Year, the fund receives a tax deferred distribution of $700. This is apportioned between the two parcels based on the number of shares in each parcel.
In the next financial year 2017, the fund purchases an additional parcel of shares. For the 2017 financial year, the fund receives a tax deferred distribution of $800. This amount is apportioned between the three parcels.
Note that the 2016 tax deferred distribution amount is not applied to the parcel acquired in the 2017 financial year as it was not held at that time.
| 2016 |
2017 |
|
|---|---|---|
| Parcel 1 | 50 shares | 50 shares |
| Parcel 2 | 150 shares | 150 shares |
| Parcel 3 | N/A | 200 shares |
| Total Holding | 200 shares | 400 shares |
| Tax Deferred Distribution for year | $700 | $800 |
| Tax Deferred carried by Parcel 1 | = (50 ÷ 200) x $700 = $175 |
= $175 + ((50 ÷ 400) x $800) = $175 + $100 = $275 |
| Tax Deferred carried by Parcel 2 |
= (150 ÷ 200) x $700 |
= $525 + ((150 ÷ 400) x $800) |
| Tax Deferred carried by Parcel 3 | N/A |
= (200 ÷ 400) x $800 |
Disposals during the year
For investments that have parcels disposed of during the year, any tax deferred amounts input at year end will be included in an automatic re-processing of disposals when recorded.
This message will be displayed when inputting tax deferred: "This transaction contains Tax Deferred / Tax Free / AMIT Cost Base Adjustment components that will affect disposals that have occurred in the current / future years. The system will reprocess these disposals automatically."