UNCLASSIFIED / CA2018-008 – Third party reporting – shares and units / Change
advice
business / SOFTWARE DEVELOPERS / advice / UNCLASSIFIED
Segment / audience / Format / Classification
CHANGE Advice
Reference No: / 2018 - 008
Title: / Third Party Reporting – Shares and Units
Version No: / 2.0
Document Date: / 30/08/2017
CHANGE IMPLEMENTATION DATE / 1/07/2017
TAX MEASURE COMMENCEMENT DATE / 1/07/2017
CURRENT STAGE / CONCEPTUAL
HIGH LEVELDESIGN
REQUIREMENTS ANALYSIS
DETAILED DESIGN
LIKELIHOOD / DRAFT
LIKELY
DEFINITE
Channels affectedExternal Tax Software products affected
ELS Fringe Benefits Tax (FBT)
SBR Resource Rent Tax (RRT)
ECI Income tax
eSAT Business Accounting systems
Portal Superannuation Systems
Prefill data Payroll systems
Calculators Corporate enterprise systems (e.g. finance/ HR)
Paper Forms
Outbound Correspondence
IMPORTANT. Information in this advice is draft only and subject to change. It is provided under the terms and conditions of the ATO Software Developers Homepage( ) and noted in the footer below
DEPENDANT LEGISLATION
Tax and Superannuation Laws Amendment (2015 Measures no. 5) Act 2015 (no. 162, 2015) – Schedule 4
BACKGROUND INFORMATION/POLICY INTENT
This is a legislative measure announced in the 2013 Budget which received Royal Assent 30 November 2015.
Under the measure the ATO will capture data on the transfers of units in unit trusts and shares.This data will contribute towards improving our digital service offerings to assist taxpayers to comply with their CGT obligations.
BUSINESS REQUIREMENTS SUMMARY
Electronic reporting specifications for the Transfers of Shares and Units (Market Participants), Transfers of Shares and Units (Listed Entities) and and updated Annual Investment Income Report were published as part of Tax Time 17. The Employee Share Scheme (ESS) reporting specification will be updated as part of Tax Time 18.
Reporters will be able to test these electronic files in the ATO test facility, based on the published specifications.
Data collected during the 2017-18 year needs to meet the requirements of the new and updated ERS. This data will need to be lodged in the appropriate format in 2018.
Currently pre-fill data includes reminder ‘flags’ that indicate a taxpayer has disposed of a CGT asset. This is limited to shares listed on the ASX and provides the security code, name and disposal date. This is provided for around 200,000 taxpayers.
In 2018, the new data will enable the capital proceeds to also be provided.
In 2019, more significant changes to the information available to support taxpayer compliance will be made. Input into these changes will inform the final design.
CONCEPTUAL VIEW (High Level Design)
DETAILED DESIGN
Support for compliance:
2017 – Provide information on disposals (Security name, Security code and date of disposal). Limited to shares information,
2018 – Provide more information on disposals (Security name, Security code, date of disposal and capital proceeds. Include managed funds and shares listed on the ASX.
2019 – It should be stressed that there may be technological or legal impediments to delivering aspects of the final design, however your input is very welcome. The data will be as per 2018 for shares or units where no purchase information is available (e.g. purchased prior to 1 July 2016). For securities with acquisition information, this could be made available to taxpayers. The format and content of this disclosure is yet to be designed. Input would be appreciated on:
  • Whether tax agents would prefer to only ‘pull down’ data for certain clients, or ‘pull down’ notifications that data is available or ‘pull down’ all available data.
  • Whether tax agents prefer raw transactions or calculations on events that may reduce the cost base such as returns of capital and cost base re-allocations
  • If parcel selection should be considered to reduce the volume of transactions to be provided to individuals.
  • How shares that are held on revenue account should be accounted for.
Comments and feedback can be sent via email to .
Names of Forms impacted:
Employee Shares Scheme (ESS) Annual Report
Transfers of Shares and Units (Market Participants)
Transfers of Shares and Units (Listed Entities)
Annual Investment Income Report
UNCLASSIFIED / This A controlled information resource WHICH is information that is not yet available to the general public, IT is made available to software developers for the sole purpose of assisting in the development of tax-related software (both commercial and in-house).
In some cases the information is in draft form or has been made available for the purposes of consultation, proof of concept work and or pilots.
HOLDERS OF THIS DOCUMENT should not on-forward controlled information to persons or organisations outside THEIR own organisation OR FOR OTHER PURPOSES. See / PAGE
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