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Annual investment income report
- By Allan Mortel
- Published 9/03/2009
- Moore Tax News
- Unrated
Lodge your annual investment income report (AIIR) on time to avoid penalties.
A change to the legislation now permits the imposition of penalties on the late lodgement of annual investment income reports.
The Income Tax Amendment Regulations 2009 (No 1) were recently tabled to enable administrative penalties to apply to the late lodgement of AIIRs. These rules apply from 1 October 2010, to AIIRs relating to financial years beginning on or after 1 July 2009.
AIIRs are prepared by investment bodies such as managed funds and investment companies (both listed and unlisted) to provide the Australian Taxation Office (ATO) with details of income paid to investors and amounts withheld from those payments. Investment bodies must provide the reports to the ATO within four months after the end of the financial year to which they relate (i.e. 31 October).
In the past, the Commissioner of Taxation could only prosecute late lodgers through the court system. Whilst this avenue still exists, monetary penalties may now be imposed on investment bodies depending on their size and the lateness of their AIIR.
These monetary penalties are intended to encourage investment bodies to lodge their AIIR on time, given the ATO’s increased reliance on their data for pre-filling income tax returns and data matching purposes.
Penalties are as follows:
-$110 for each 28 days (or part thereof) that the forms are late (up to a maximum of $550) for small withholders or entities with assessable income or GST turnover not exceeding $1 million
-$220 for each 28 days (or part thereof) that the forms are late (up to a maximum of $1,100) for medium withholders or entities with assessable income or GST turnover exceeding $1 million but less than $20 million
-$550 for each 28 days (or part thereof) that the forms are late (up to a maximum of $2,750) for large withholders or entities with assessable income or GST turnover of $20 million or more.
It is important to note these penalties do not apply to outstanding AIIRs for the 2008 and 2009 financial years.
Please liaise with your fund administrator or share registry to ensure the appropriate procedures are in place for the timely lodgement of AIIRs. If your fund administrator or share registry cannot prepare the AIIR, we can assist if requested.
For more information please contact either Allan Mortel on (02) 8236 7700 or your Moore Stephens relationship partner.
A change to the legislation now permits the imposition of penalties on the late lodgement of annual investment income reports.
The Income Tax Amendment Regulations 2009 (No 1) were recently tabled to enable administrative penalties to apply to the late lodgement of AIIRs. These rules apply from 1 October 2010, to AIIRs relating to financial years beginning on or after 1 July 2009.
AIIRs are prepared by investment bodies such as managed funds and investment companies (both listed and unlisted) to provide the Australian Taxation Office (ATO) with details of income paid to investors and amounts withheld from those payments. Investment bodies must provide the reports to the ATO within four months after the end of the financial year to which they relate (i.e. 31 October).
In the past, the Commissioner of Taxation could only prosecute late lodgers through the court system. Whilst this avenue still exists, monetary penalties may now be imposed on investment bodies depending on their size and the lateness of their AIIR.
These monetary penalties are intended to encourage investment bodies to lodge their AIIR on time, given the ATO’s increased reliance on their data for pre-filling income tax returns and data matching purposes.
Penalties are as follows:
-$110 for each 28 days (or part thereof) that the forms are late (up to a maximum of $550) for small withholders or entities with assessable income or GST turnover not exceeding $1 million
-$220 for each 28 days (or part thereof) that the forms are late (up to a maximum of $1,100) for medium withholders or entities with assessable income or GST turnover exceeding $1 million but less than $20 million
-$550 for each 28 days (or part thereof) that the forms are late (up to a maximum of $2,750) for large withholders or entities with assessable income or GST turnover of $20 million or more.
It is important to note these penalties do not apply to outstanding AIIRs for the 2008 and 2009 financial years.
Please liaise with your fund administrator or share registry to ensure the appropriate procedures are in place for the timely lodgement of AIIRs. If your fund administrator or share registry cannot prepare the AIIR, we can assist if requested.
For more information please contact either Allan Mortel on (02) 8236 7700 or your Moore Stephens relationship partner.
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