You must complete this form if:
- you are the forestry manager of a forestry MIS
- the scheme satisfies the 70% DFE rule
- 18 months have elapsed since the end of the income year in which an amount is first paid under the forestry MIS by a participant in the scheme, and
- the trees intended to be established in accordance with the scheme have not all been established before the end of this 18 month period.
The forestry manager or their tax agent must complete and lodge the Failure to establish notification form (NAT 71435 PDF, 280KB)This link will download a file within 21 months after the end of the relevant financial year (by 31 March). A penalty may apply if this form is not lodged on time.
Note: For the failure to establish notification form, the 'relevant financial year' is the income year in which an amount is first paid under the forestry MIS by a participant in the scheme.
ABC Forestry Ltd., a forestry manager, receives its first amount from investors on 15 August 2007 as payment for fees in its forestry MIS. The income year in which an amount is first paid by a participant is 2007-08.
On 31 December 2009 (18 months after 30 June 2008) due to problems with the drought, ABC Forestry Ltd. has only established 80% of the trees in accordance with the scheme.
ABC Forestry Ltd. will need to ensure that a failure to establish notification form is completed and lodged by 31 March 2010.End of example