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Chapter 5: Proving your assessment

Last updated 27 June 2012

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, with a maximum penalty of $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 the consent of the Commissioner of Taxation (Commissioner)

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

 

QC25628