Superannuation

Dividend reconciliation

Statement purpose
This statement enables for tax adjustments to the amounts recognized in the net accounting profit or loss for the period concerning dividends by component. It also calculates the total of those components for tax purposes, including relevant income components of domestic partnership and trust distributions.

Data flow

If the
Dividend Information Import
 statement has been inserted, the Dividends (gross of withholding tax) row will be linked to the statement. Otherwise, amounts can be entered directly into each cell within the row. The foreign income amount is converted to a net amount by deducting the foreign income tax-offset component.
Dividend components which are received via trust distributions are linked from the
Distribution entitlement summary
 statement.
Component totals from this statement link to the other backup statements.
The
Dividends Reconciliation
 section of the statement adjusts the accrued dividend amount by deducting the opening balance and adding back the closing balance of
Dividends Receivable
 as of the same date. This determines the necessary adjustments in the
Tax Reconciliation
 statement for dividends recognised for accounting purposes in the current year but not derived for tax purposes, as well as dividends recognised for accounting purposes in the prior year but derived for tax purposes in the current year.

Explanation of fields

Credits denied
Franking credits disallowed due to the 45-day rule or alternative benchmark rule, along with any other necessary adjustments to various components, must be entered manually.
Dividend reconciliation section
The
Dividend Reconciliation
 section of the statement verifies that the information in the
Dividend Information Import
 statement matches the dividend information in other schedules. There should be no variance in the
variation
 cell.
The statement enables income and expense items to be split into domestic and foreign components.

Signage

  • All increases to the assessable income of a component should be entered as a
    positive
     amount.
  • All decreases to the assessable income of a component (including the disallowance of imputation credits) should be entered as a
    negative
     amount.

This article applies to:

  • Product: ONESOURCE Corporate Tax