• Section H: Information relating to entitlement to endorsement

    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

    This section allows the trustee to advise us on some governance issues.

    Show X in the Yes or No box, where applicable.

    A Has the fund's auditor confirmed compliance by the fund and the trustee with the PAF guidelines?

    Each financial year the trustee must arrange for an auditor to audit compliance with the PAF guidelines by the fund and the trustee. The audit must be finalised before the fund is required to lodge the return.

    Find out more

    Refer to PAF guidelines 28, 29 and 48.

    End of find out more

    B Have the fund's financial statements been audited?

    Each financial year the trustee must arrange for an auditor to audit the financial statements of the fund.

    The audit must be finalised before the fund is required to lodge the return.

    Find out more

    Refer to PAF guidelines 26, 27 and 28.

    End of find out more

    C Has the trustee advised the Commissioner of every change to the fund's governing rules?

    Attention

    If no changes have been made to your fund's governing rules, you are not required to answer this question.

    End of attention

    The trustee must let us know, using the approved form Notification of changes to the governing rules of an endorsed private ancillary fund (NAT 73402), within 21 days of any change in the fund's deed or will.

    Find out more

    Refer to PAF guideline 17.

    End of find out more

    D If the fund was formerly a PPF did it choose not to apply the transitional distribution rules?

    Attention

    If your fund was not formerly a PPF, you are not required to answer this question.

    End of attention

    A former PAF may choose to not apply the transitional distribution rules (that is, based on donations and income) and instead apply the distribution rules under PAF guideline 19 (that is, based on market value). That choice must be made within the financial year in which it changes its distribution method.

    Example

    If a fund wishes to adopt the new distribution rules in relation to the 2010-11 financial year, it must make the minimum distribution in accordance with guideline 19 during the 2010-11 year and make the choice not to apply this transitional rule before lodging its PAF return 2011.

    End of example

    Find out more

    Refer to PAF guidelines 53 and 54.

    End of find out more

    E Has the market value of assets other than land been estimated at the end of the financial year?

    The trustee must have estimates of market value of the assets, other than land and buildings, at 30 June 2011.

    Estimates must be completed before the fund is required to lodge their return for the relevant financial year.

    The market value must be estimated in accordance with the PAF guidelines and any other directions from us.

    We consider that, where there are circumstances that make the value apparent (for example, all assets of the company are in cash or listed shares), the trustee may use the market value established by the account balance for cash or the listed price of the shares.

    However, we also consider that estimating the market value of shares in a private company is likely to be difficult or complex and so must be estimated by a certified and independent valuer or by the ATO.

    Find out more

    Refer to PAF guidelines 20, 22 and 23.

    End of find out more

    F Has the market value of land been estimated within the last 3 financial years?

    Attention

    If your fund has not held any land, you are not required to answer this question.

    End of attention

    The trustee must have estimates, which have been made within the last three financial years, of the market value of assets that are land, including buildings.

    Estimates must be completed before the fund is required to lodge their return for the relevant financial year.

    The market value must be estimated in accordance with the PAF guidelines and any other directions from us, and must be made by a certified and independent valuer or by the ATO.

    Find out more

    Refer to PAF guidelines 21, 22 and 23.

    End of find out more

    G Was every financial dealing of the fund with an associated person or entity made at arm's length?

    Dealings with a founder, donor, trustee, director, officer, agent, member or employee of the trustee, or an associate of these entities must be at arm's length or on terms more favourable to the fund than would otherwise be expected under an arm's length transaction.

    Find out more

    Refer to PAF guideline 36.

    End of find out more

    H Did the fund wind up or cease to be a PAF during the financial year?

    If the PAF wound up or ceased to be a PAF during the financial year it must include the audit report when it lodges the PAF return 2011.

    Last modified: 31 Jul 2014QC 24273