Tax Guide 2012: 2011–12 Tax Return Information Statement Guide

Tax Guide 2012 2011–12 Tax Return Information Statement Guide This guide will help you to complete your 2011–12 tax return using your 2011–12 Tax Return Information Statement from Colonial First State. You should use this guide if… you have received distributions during the 2011–12 financial year from the following Colonial First State products: • FirstChoice Investments • FirstChoice Wholesale Investments • Colonial First State Managed Investment Funds • Colonial First State Wholesale Investments • Diversified Private Equity. You may wish to give this guide to your accountant or tax agent You will receive • A separate Tax Return Information Statement for each investment you hold in the products listed above. • If you have withdrawn from your investment (including to pay an adviser service fee) or switched investments during the year you may also receive a Capital Gains Tax Information Statement from Colonial First State. All this information needs to be included when you complete your 2011–12 income tax return. Please contact your tax agent or accountant about personal tax matters For general enquiries about your Colonial First State investments, please refer to ‘Frequently asked questions’ on page 8, or call Investor Services on 13 13 36, Monday to Friday, 8am to 7pm, Sydney time. You can view this guide at colonialfirststate.com.au, under ‘Forms & tools’. This tax guide provides general information only and does not take into account your individual taxation or financial objectives, situation or needs. It is not advice. You should discuss the information in this tax guide with your financial adviser and your accountant or tax adviser. Copyright in the Individual tax return instructions and individual tax return forms for 2012 subsists in the Australian Taxation Office. The responsible entity of the funds listed on the front cover of this brochure is Colonial First State Investments Limited ABN 98 002 348 352 AFS Licence 232468. This guide helps you in 3 ways 1 Declare distributions from your Colonial First State investments in your personal tax return. 2 Understand the different tax components of your distributions with a ‘Definitions’ page (these are on page 7 of this guide). 3 Answer some ‘Frequently asked questions’, that might save you a phone call, see page 8 of this guide. To complete your 2012 tax return, you will need: • A copy of the Individual tax return instructions 2012 General points when using this guide • A copy of the Individual tax return instructions supplement 2012 • A copy of the Tax return for individuals 2012 • A copy of the Tax return for individuals (supplementary section) 2012 • your Tax Return Information Statement for each of the Colonial First State products you hold that are listed on the front page of this guide. You will also need taxation information statements from any other income-paying sources • your Capital Gains Tax Information Statement for each of the Colonial First State products from which you have withdrawn (including to pay an adviser service fee), or switched during the year and a copy of the Colonial First State Capital Gains Tax Information Statement guide. This guide is not necessary if you have not withdrawn (including to pay an adviser service fee) or switched investments during the year • your quarterly/half-yearly statements if you have paid an adviser service fee. • Even if you have reinvested your distributions they still need to be included in your tax return. • If you have other Colonial First State investment products and/or income from other sources you need to include all of these amounts in your 2011–12 income tax return. • If you have borrowed money to invest in any Colonial First State investment products you should be able to claim a tax deduction for any interest you have paid (where your borrowing is capital protected, you should seek specialist taxation advice). • If you have paid an adviser service fee you will normally be able to claim a tax If you have capital gains from other sources, or capital losses, deduction for this. you may also need the ‘Guide to Capital Gains Tax 2012’, available from the Australian Taxation Office (ATO). Please read all the instructions in this guide before you complete the Tax return for individuals (supplementary section) 2012. 2 You will need to refer to the Tax return for individuals (supplementary section) 2012 and your Tax Return Information Statement to Summary of 2011–12 Tax return for individuals (supplementary section) items Part A Tax Return (supplementary section) Refer to Part A of your Colonial First State Tax Return Information Statement. Then follow the headings step-by-step. Non-primary production income (13U) Refer to your Tax Return Information Statement; Non-primary production income will have an amount next to it and a Tax Return Label (13U) on your Tax Return Information Statement. • Enter this amount (plus any other amounts of non-primary production income you have from other trusts) at Question 13 U of your Tax return for individuals (supplementary section) 2012. Other deductions relating to distributions (13Y) Refer to your Tax Return Information Statement; there may be an amount shown to the right of Other deductions relating to distributions next to Tax Return Label (13Y), for the 2011–12 financial year. Usually this would be the interest on your margin loan. If you had a Colonial First State margin loan, details of any deductible interest will be shown in Part D. (Only margin loan investors will receive Part D). You may also have other deductions that you can claim against the amount you have entered at 13 U . (Note: prepaid interest may not be fully tax deductible). Deductions you may be able to claim include any adviser service fee you have paid during the year (these amounts are shown on your Adviser Service Fee tax invoice), interest on loans used to finance your trust investments, or other expenses incurred when earning income from your investments (for example Franking credits for direct share investments should not be included here, but at Question 11 in the Tax return for individuals 2012 (not the supplementary section). You should seek professional advice if you have disposed of investments shortly after receiving a distribution with franking credits. Credit for Tax File Number (TFN) amounts withheld (13R) Refer to your Tax Return Information Statement; Credit for TFN amounts withheld, Tax Return Label (13R) may have an amount to the right of it. • Enter this amount at Question 13 R of your Tax return for individuals (supplementary section) 2012. Total current year capital gains (18H)/Net Capital Gain (18A) If you have no amount to the right of Net Capital Gain (18A) go to Assessable foreign source income at the top of page 5 of this guide. If there is an amount shown print Y in the box at G at Question 18 on your Tax return for individuals (supplementary section) 2012. Print N in the box at Q at Question 18 unless you have an investment in a forestry managed investment scheme. Then work out which circumstance applies to you from the three options below. Do you have: bank charges). • Enter the total deductions at Question 13 Y of your Tax return for individuals (supplementary section) 2012. Subtract the total deductions at Y from any amount you entered at U . The result should be entered in the ‘Net non-primary production distribution’ box in Question 13 . If this is a negative amount (a loss) print L in the Loss box to the right of this figure. Franked distributions (13C) Refer to your Tax Return Information Statement: Franked Option 1 Capital gains from Colonial First State only and no capital losses. Follow the steps for Option 1 below. Option 1 Option 2 Capital gains from Colonial First State and other sources and no capital losses. Follow the steps for Option 2 on page 5. Option 3 Capital gains from Colonial First State and other sources and capital losses. Go to Assessable foreign source income on page 5 and then Part B on page 6. distributions, may have an amount to the right of it and a Tax Return Label (13C) on your statement. • Enter this amount (and include any franked distributions your received from other trust partnership distributions) at Question 13 C of your Tax return for individuals (supplementary section) 2012. Question 18 If you have an amount to the right of Total current year capital gains on your Tax Return Information Statement, enter this amount at 18 H on your Tax return for individuals (supplementary section) 2012. Take the amount to the right of Net capital gain on your Franked distributions for direct share investments should Tax Return Information Statement and enter it in at 18 A . not be included here, but at Question 11 in the Tax return for individuals 2012 (not the supplementary section). Franking credits (13Q) Refer to your Tax Return Information Statement; Franking credits (also referred to as imputation credits) may have an amount to the right of it and a Tax Return Label (13Q) on your statement. • Enter this amount (and include any franking credits you received from other trust or partnership distributions) Normally the difference between Total current year gains and Net capital gains is the non taxable CGT concession amount. Then go to Assessable foreign source income, on page 5 of this guide. at Question 13 Q of your Tax return for individuals (supplementary section) 2012. 3 complete the following steps. Investor account type 4 Option 2 For capital gains from other sources, you may need to use the ‘Guide to Capital Gains Tax 2012’, which is available from the ATO. The guide provides step-by-step instructions to calculating the amounts needed to complete your tax return. Question 18 If you have an amount to the right of Total current year capital gains on your statement, add this amount to gains received from other sources (calculated using the ATO guide). The sum of these amounts should be entered at 18 H of your Tax return for individuals (supplementary section) 2012. Take the amount to the right of Net capital gain and add this amount to your net capital gain from other sources (calculated using the ATO guide). The sum of these amounts should be entered at 18 A . Then go to Assessable foreign source income, below. Assessable foreign source income (20E) If you have an amount to the right of Assessable foreign source income on your Tax Return Information Statement (and you do not have any other foreign source income from another source, including foreign employment or foreign pension/annuities), then enter the amount to the right of Assessable foreign source income at Question 20 E . If you do have foreign income from foreign employment and/or foreign pensions and annuities, you will need to refer to the instructions for Question 20 in the Individual tax return instructions supplement 2012. You should seek professional advice if you have deductions or losses carried forward relating to foreign income. Other net foreign source income (20M) If you have an amount to the right of Other net foreign source income on your Tax Return Information Statement (and you do not have any other foreign source income from another source (including foreign employment income or foreign pension/ annuity income)) then include the total to the right of Other net foreign source income at Question 20 M. If you have foreign employment income or foreign pension/ annuity income you will have to follow the instructions for Question 20 in the Tax return for individuals (supplementary section) 2012. You should seek professional advice if you have deductions or losses carried forward relating to foreign income. Note: If you have Other net foreign source income or Assessable foreign source income from other sources (ie other managed fund distributions) you will need to combine these amounts before completing your tax return. Foreign income tax offset (200) If you have an amount next to foreign income tax offsets on your tax statement, include that amount in your Tax return for individuals (supplementary section) 2012 at 20 O . 5 ... - --nqh--