Guidance notes

Part A. Summary of tax return 2006 (supplementary section) items

1. The references in Part A are to the tax return for individuals 2006 (supplementary section).
2. Label 12U - Non- primary production income.
   Unitholders include their share of franked dividends and their share of franking credits at this item. Net capital gains and foreign income are not shown here.
   The standard format assumes that there is no primary production activities carried out by the managed fund.
3. Label 12Y - Other deductions relating to distributions.
   At this label unitholders show the total of deductible expenses they incurred during the income year. (Deductions allowable to the trustees that are taken into account in the net income calculation under section 95 of the ITAA 1936 are not shown at this item. Ordinarily, deductible expenses would be netted off against the relevant class of income in the trust estate.)
4. Label 12Q - Franking credits.
   Unitholders show their share of franking credits from franked dividends at this item. Include cents.
5. Label 12R - Credit for TFN amounts withheld.
   At this item unitholders show their share of any credit for tax file number amounts withheld from interest, dividends, and unit trust distributions paid or payable in accordance with sections 12-140 and 12-145 of Schedule 1 to the Taxation Administration Act 1953. Cents should be included.
6. Label 12S - Credit for tax paid by trustee.
   At this item unitholders show their share of any credit for tax paid or payable by the trustee including cents. For example, tax paid or payable when the trustee has been assessed under subsection 98(1) of the ITAA 1936 in respect of beneficiaries under a legal disability (includes beneficiaries under the age of 18).
7. Label 17H - Total current year capital gains.
   Label 17A - Net capital gain.
   The components of these items are set out in Part C. It is important to note that an individual unitholder who has capital losses, will not simply be able to transfer the net capital gain amount from Part A to their tax return. Fund managers may wish to refer investors in these circumstances to the Tax Office publication - Guide to capital gains tax 2005-06 or the Personal investors guide to capital gains tax 2005-06 or provide details in their own explanatory material.
8. Item 18 - Foreign entities.
   Part A of the standard format assumes that there is no attributed foreign income of the trust such that the information requested at item 18 of the tax return 2006 (supplementary section) is not applicable to the managed fund investment. If this is not the case this information should be provided to unitholders.
9. Label 19E - Assessable foreign source income.
   Label 19M - Other net foreign source income.
   We would expect that Part A of the trust distribution statement would show the amounts for these labels to be the same. If the unitholder has foreign income deductions they should follow the instructions in TaxPack 2006 Supplement.