How to complete the information return for the period 1 July 2007 to 30 June 2008

This publication, including the Prescribed private fund information return, can be downloaded in Portable Document Format: download How to complete the Prescribed private fund information return 1 July 2007 to 30 June 2008 (NAT 7235, PDF, 196KB)

Introduction

Prescribed private funds (PPFs) must provide a simple annual return to the Tax Office at the end of the each financial year.

We provide a Prescribed private fund information return for this purpose. You will need to complete either the full version or simplified version of this return depending on your circumstances.

PPFs must ensure that any benefit (money or property) bestowed is distributed only to funds, authorities or institutions that are endorsed under Subdivision 30-B of the Income Tax Assessment Act 1997 (ITAA 1997).

Benefits must not be bestowed on deductible gift recipients that are only endorsed under Item 2 of Section 30-15(2) of the ITAA 1997. These include other prescribed private funds and public funds established for the sole purpose of providing money, property or benefits to a fund, authority or institution under Item 1 of Section 30-15(2) of the ITAA 1997.

Failure to provide the completed return, audit report and financial statements by 28 February 2009 may result in the fund being reviewed

Simplified return

To be eligible to provide a simplified return, a fund must:

• have been approved during the relevant financial year; and
• must not have received any donations or income during the financial year.

If the fund meets the above criteria, it is eligible to provide a simplified return comprising:

• an opening and closing balance, and
• a declaration signed by the trustee.

What to lodge/provide

When lodging a simplified return, you must provide:

• a signed declaration, and
• legible copies of either a bank statement(s) or general ledger(s) showing no transactions.

Audit report

Each fund must have its financial statements audited by a person registered, or taken to be registered, as an auditor under Part 9.2 of the Corporations Act 2001.

If the fund qualifies for the simplified return, it does not have to provide the Tax Office with a copy of the audit report or supporting financial information.

Self review

We recommend that you take this opportunity to review the activities that the fund has undertaken this financial year. If you identify an issue during the review that may endanger the status of the fund as a PPF, we encourage you to disclose that information to the Tax Office, in writing, to the address provided.

Status of return

The information return is not an income tax return. The purpose of the information return is to provide us with a summary of a fund's activities for the year, including:

• donations received and distributed
• income derived
• expenses of operation
• net worth of the fund
• a copy of the fund's audit report for the year, and
• a copy of the financial statements in support of the audit report.

Tax concessions

PPFs are not exempt from income tax unless the fund is endorsed by the Tax Office as either a tax concession charity (TCC) or as a income tax exempt fund (ITEF).

A PPF will qualify for TCC status if its purpose is to make distributions solely to deductible gift recipients that are charitable at law.

A PPF will qualify for ITEF status if its purpose is to make distributions to deductible gift recipients that are exempt from income tax but not necessarily charitable at law.

PPFs are entitled to GST concessions.

PPFs are not entitled to any FBT exemptions or rebates.

For more information regarding TCCs and ITEFs please refer to the Non profit website at www.ato.gov.au

Who submits an information return?

You must complete and submit an information return for the year ended 30 June 2008 if you:

• are a private fund that is prescribed in the Income Tax Assessment Regulations 1997 section 995-1.02, or
• have been approved for prescription in the regulations before 1 July 2008, and have received written confirmation to that effect.

When and where do you send the information return?

Mail your completed information return, audit report and financial statements by 28 February 2009 to: Non Profit Centre, Small and Medium Enterprises Australian Taxation Office GPO Box 9990 CANBERRA ACT 2601