Query
Why does the Net Cash calculated by Simple Fund 360 not reconcile to the Net Cash displayed on TCL FY 2020 statement?
Solution
TCL is a stapled security where the August distribution usually includes both distribution and dividends that are reported in the tax return in different periods.
- Distribution is reported in the tax return when it is incurred
- Dividends are reported in the tax return when it is paid.
The TCL FY2020 Tax statement Net Cash only includes distribution components from Transurban Holding Trust.
Below is a summary of payment received from Aug 2019 to Aug 2020 and an Annual Tax Statement for FY 2020 as an example.
Distribution Date |
Aug 2019 |
Feb 2020 |
Aug 2020 |
Units at Ex-Date |
21,431 |
22,456 |
22,456 |
Payment per unit |
$ 0.3 |
$ 0.31 |
$ 0.16 |
Total Payment |
$ 6,429.3 |
$ 6,961.36 |
$ 3,592.96 |
Dividend per unit |
$ 0.02 |
$ 0.02 |
$ 0 |
Dividend component |
$ 428.62 (1) |
$ 449.12 (2) |
$ 0 (3) |
Distribution per unit |
$ 0.28 |
$ 0.29 |
$ 0.16 |
Distribution component |
$ 6,000.69 (4) |
$ 6,512.24 (5) |
$ 3,592.96 (6) |
Dividends (1) + (2) form part of the FY 2019-20 Distribution, but are not included in the TCL annual tax statements, resulting in a discrepancy of $877.74.
To reconcile, enter the dividend components via the Distribution Tax Automation screen as below.