ato

 
 
Show download pdf controls
Show print controls

  • Chapter 4: Proving your assessment

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    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.

    Summary of chapter 4

    Part

    Subject

    Applies to

    Action

    If not done

    Part 1

    Record keeping for attributable taxpayers

    Attributable taxpayer

    Keep records of attributable amount

    Prosecution $3,000

    Part 2

    Passing the active income test

    Attributable taxpayer

    Supply accounts and accounting information to Tax Office

    No offence if not supplied - but CFC fails active income test

    Part 3

    Can the Tax Office ask you to get information from overseas?

    Taxpayer

    Produce documents

    Evidentiary sanction - no documents can be used in evidence without Commissioner's consent

    Part 4

    What records of elections must you keep?

    CFC or taxpayer

    Make election

    Treated as if no election made
    Last modified: 18 May 2020QC 19443