The ATO has released a guide to the International dealings schedule (IDS) 2012. It says the IDS will form a part of the 2012 income tax return for certain taxpayers. The guide outlines the circumstances where a company, partnership or trust will need to complete the IDS. The ATO says the IDS needs to be completed if an amount or “Y” (for yes) is entered into any of the labels in the 2012 income tax return for the following entities:
- Companies:
▪ Question 7 (Reconciliation to taxable income or loss) Label P (Offshore banking unit adjustment);
▪ Question 26 (International related party dealings/transfer pricing) Label Y (Aggregate amount of transactions or dealings greater than $2m);
▪ Question 27 (Overseas interests) Label Z (Overseas branch operations or direct/indirect interest in foreign trusts, companies, entities and transferor trusts); or
▪ Question 28 (Thin capitalisation) Label O (Application of thin capitalisation provisions).
- Partnerships and Trusts:
▪ Question 22 (Attributed foreign income) Label S (Direct or indirect interests in foreign trusts, controlled foreign companies or transferor trusts); or
▪ Question 29 (Overseas transactions) Label W (Aggregate amount of transactions or dealings with international related parties greater than $2m).
The ATO says the IDS will be available for completion from 1 July 2012 in both electronic and paper form.
[LTN 86, 8/5]