Published on 29 Aug 13
by NATIONAL DIVISION, THE TAX INSTITUTE
How to capture tax within unit prices or crediting rates can be a minefield for funds. This presentation explores the two main systems used by funds:
- the “actual information” system
- the “effective tax rates” system where each of the following issues will be discussed:
- setting accrual rates (and possibly separate accrual for franking credits)
- periodic review of these rates
- periodic comparison of tax accruals arising from these rates versus the fund’sactual tax experience and processing of true up adjustments
- systems for allocating actual tax paid in BASs and the tax returnto different investment options
- implementing deferred tax asset caps (if necessary) within these overall systems
- dealing with pension options
- APRA’s expectations in this area and other industry guidance (ie ASFA/FSCpapers) are also considered.
Dana Fleming FTIA is a Partner with KPMG.
Current at 2 October 2008 Current at 27 April 2009
Current at 12 September 2013