Foreign income return form guide 2010-11

Chapter 5: Proving your assessment

Overview

You will need to keep receipts, invoices, ledgers and other accounting records of a company or trust that relate to the calculation of its notional assessable income.

In addition, you will need to keep details of your interest in the company, the interests of your associates and how you worked out the amount you included in your assessable income.

This chapter also explains the substantiation requirements of the active income test, the use of offshore information notices and the keeping of records of elections.

This chapter also explains the record keeping requirements for accessing FIF exemptions.

Part	Subject	Applies to	Action	If not done
Part 1	Record keeping for CFC attributable taxpayers	Attributable taxpayer	Keep records of CFC attributable amount	Prosecution $3,300
Part 2	Passing the active income test	Attributable taxpayer	Supply accounts and accounting information to ATO	No offence if not supplied, but CFC fails active income test
Part 3	Can the ATO ask you to get information from overseas?	Taxpayer	Produce documents	Evidentiary sanction - no documents can be used in evidence without Commissioner of Taxation's (Commissioner) consent
Part 4	What records of elections must you keep?	CFC or taxpayer	Make election	Treated as if no election made
Part 5	Record keeping for FIF attributable taxpayers	Taxpayer	Keep records of FIF attribution accounts

Sections within Chapter 5: Proving your assessment

• Part 1: Record keeping for CFC attributable taxpayers
• Part 2: Passing the active income test
• Part 3: Can the ATO ask you to get information from overseas?
• Part 4: What records of elections must you keep?
• Part 5: Record keeping for FIF attributable taxpayers