Distribution Tax Automation simplifies the end of the year processing when entering your Annual Tax Statements for ETFS, 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.
- This article outlines how to navigate the Distribution Tax Automation screen and the best practices recommended for entering and processing tax component data.
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 are able to upload Tax Statements and use the BGL SmartDocs AI to extract the tax component data for investments.
Navigation
| From the Main Toolbar, go to Home. | |
| Navigate to Fund Workflow |  |
| Select a fund | |
| from the Main Menu select Compliance | |
| Select Distribution Tax Automation |
Fund Level Functions
Distributions that have a unit balance will need to be reviewed. Select multiple sub-accounts and use the main menu to process in bulk.
| Function | Image | Description |
|---|---|---|
| Generate Tax Data |
The lightning bolt located next to the security code indicates the Simple Fund 360 will have System Data available. Select the securities from the grid and click Generate Tax Data to process in bulk. Each security selected in bulk processing will need to be reviewed. Once a security has been reviewed select Generate Tax Data and Mark as Reviewed. Simple Fund 360 will show tax data for the next income account selected. |
|
| Extract from PDF and Review | These functions are to allocate and extract tax components from annual tax statements. | |
| Mark as Reviewed | This function will move the selected securities from Incomplete to Reviewed. | |
| Clear Components | For the selected securities Clear Components will remove all tax data entered against the selected income accounts. | |
| Supported Securities | Use the Supported Securities list, to locate securities that are supported with system data within a financial year. | |
| Distribution Event History | Review the complete history of Distribution Tax Automation. | |
| Distribution Reconciliation Report | Simple Fund 360 will prepare the Distribution Reconciliation Report. | |
| Post Accruals | Access the Post Year-End Accruals function. |
Distribution Level Functions
Process and review each individual distribution that has a unit holding within the fund selected.
| Function | Image | Description |
|---|---|---|
| Expand/Collapse | Preview the income transactions posted to the ledger. When Expand/Collapse is not displaying, unit holdings in the investment are present but no income has been recorded to the linked income account. | |
| System Data | System data is available. Simple Fund 360 will pre-fill the per-unit value on the more commonly known listed trusts and managed funds. This is known as the System Tax Data. System Data is not editable. | |
| Extract from PDF | Extracts tax components from attached annual tax statement. | |
| Re-analyse | This function will cause SmartDocs to re-read the annual tax statement and populate the tax components in the extract from PDF. | |
| Add new Transaction | This function will enable the user to post a Journal or a Bank Statement entry from the Distribution Tax Automation console. | |
| Clear Components | Remove all tax data entered against the selected income account. | |
| Upload Document | Upload source documents (MAX 30MB). Uploaded documents will be automatically saved in the Document Screen. | |
| View History | View history of the distribution account selected. | |
| Custom 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. |
Important
If users have manually recorded distribution components via the transaction list in the current financial year, generating tax data from Distribution Tax Automation will overwrite these distribution components for the selected investment.
Generate Tax Component Data
The process of generating tax data depends on whether system tax data is available for the investment.
- If system tax data is available, the lightning bolt icon will display to the left of investments on the Distribution Tax Automation screen:
| Navigate to Compliance | |
| Select Distribution Tax Automation |
If system tax data is available for the investment:
- Select the Generate Tax Data icon in line with the investment:
A window will appear with pre-filled tax components for the investment.
- Review the tax components generated by the system ensuring they are correct.
Once satisfied, select Generate & Mark as Reviewed.
If system tax data is NOT yet available:
BGL SmartDocs can be utilised to extract Tax Component data from annual tax statements.
- Forward the annual tax statement(s) to the fund’s SmartDoc email address or upload the statement(s) in Documents screen.
- Note for Bulk Uploading: It will take 2-3 seconds for SmartDocs to analyse each statement so we recommend you to gather all statements and forward/upload multiple statements at one go to improve efficiency rather than process one statement at a time.
- Once all statements have been analysed, in the Distribution Tax Automation screen, click the SmartDocs Review button and use the Review screen to attach the relevant investment code to the statement:
- The document will now be attached to the investment. To generate tax data, select the
icon in line with the investment:
- Review the tax components generated by the system ensuring they are correct.
Once satisfied, select Generate & Mark as Reviewed.
Tax Components can also be manually entered if desired.
Note: Uploaded Tax Statements help improve System Tax Data
Please note that the SmartDocs data generated and reviewed from uploaded statements will be used as part of our existing process to collect/calculate and verify system tax data so that it will be available for other funds.
Post Accruals
Ensure all Bank/Cash receipts of distribution and distribution reinvestments have been processed prior to posting accruals via the Distribution Tax Automation screen.
| Navigate to Compliance | |
| Select Distribution Tax Automation | |
| Select Post Accruals |
- Select the Distribution(s) you wish to create the accrual journal.
- Select Post Transaction. A confirmation screen will summarise all the selected distributions and provide the combined total amount:
- Select
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 |
|
| 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?
To reverse a distribution accrual, follow the steps below based on the type of accrual:
If the Distribution Accrual is Received:
Use a Bank Statement Journal to post the Distributions Receivable (61800/Investment Code) against the Bank Account.
If the Distribution Accrual is a Distribution Reinvestment:
Use a General Journal to post Distributions Receivable (61800/Investment Code) against the Investment Account. Ensure that the reinvested units are entered, and select the Dividend/Distribution Reinvestment option.
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 |
Supported Securities - System Tax Data
A list of supported securities can be viewed directly on the Distribution Tax Automation Screen.
| Navigate to Compliance | |
| Select Distribution Tax Automation | |
| Select Supported Securities |
The Current Financial Year supported securities will display. Using the drop-down menu in the Supported Securities screen you will also have the option to view the Previous Financial Year and the Next Financial Year of the entity selected.
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.