Tax Labels for Trusts – Simple Invest 360

Overview

Simple Invest 360 provides you with the ability to attach tax labels to accounts processed for the current financial year prior to preparing the year-end workflow.

This allows the accounts and the respective amounts to accurately reflect the Tax Reconciliation Report and Statement of Taxable Income Report.

The Tax Label screen will only display accounts that have a balance processed in the current financial year.
Tax Labels cannot be changed for default Income/Expense and Equity account types. However, tax labels can be changed for custom account types.

Tax Labels only apply to Companies and Trusts, for more information on Tax Labels for Companies click here.

Navigation

From the Main Toolbar, go to Compliance.
Select Period Compliance.

Select Tax Labels

The Tax Labels screen will display, listing current year accounts that have a balance processed within the financial year.

From here, users can attach the relevant Tax Label and Secondary Labels to the sub-account or normal account. Select from the drop-down list the most appropriate label corresponding to the Trust Tax Return.Togglefor Expand All to view the full list of sub-accounts.

Note: System tax labels are fixed and un-editable

A workaround to this is to create a custom account in the Chart of Accounts.

List of Tax Labels

Account Types	Tax Labels
Beneficiary – Trust, Liability and Non-current Liabilities	Current Liabilities Non-Current Liabilities
Investment, Asset and Asset – Bank	Current Assets Non-Current Assets
Income	Gross Interest – Including Australian Government Loan interest Other Australian Income Other Business Income Gross Payments where ABN not Quoted Gross Payments subject to Foreign Resident Withholding Assessable Government Industry Payments Forestry Managed Investment Scheme Income Other Non-Assessable Income Other Rental Income
Expense	Other Deductions Deductions relating to Australian Investment Income Rental Expenses - Sundry Rental Expenses Rental Expenses - Advertising for Tenants Rental Expenses - Cleaning Rental Expenses - Council Rates Rental Expenses - Gardening/Lawn Mowing Rental Expenses - Insurance Rental Expenses - Borrowing Expenses Rental Expenses - Interest on Loans Rental Expenses - Land tax Rental Expenses - Pest Control Rental Expenses - Repairs and Maintenance Rental Expenses - Property Agent Fees/Commissions Rental Expenses - Stationery, Telephone and Postage Rental Expenses - Legal Fees Rental Expenses - Travel Expenses Rental Expenses - Water Chargers Rental Expenses - Body Corporate Fees Rental Expenses - Capital allowance Cost of Sales Foreign Resident Withholding Expenses Contractor, Sub-Contractor and Commission Expenses Superannuation Expenses Bad Debts Lease Expenses Royalty Expenses Motor Vehicle Expenses Repairs and maintenance Other Expenses Forestry Managed Investment Scheme Deductions Staff Expenses Office Charges Amortisation expenses Capital Works Expenditure Other Non-Deductible Expenses Interest Expenses

List of Secondary Tax Labels

The Secondary Tax Label that can be selected is conditioned on the account code and the chosen tax label from the previous list.

Account Types	Tax Labels
Income	Primary Business Non-Assessable
Expense	Primary Business Foreign Non-Deductible Deductions relating to Franked Dividends Deductions relating to Franked Distributions Deductions relating to Partnership and Trust Deductions relating to Foreign Income Deductions relating to Skills and Training Boost Deductions relating to Technology Investment Boost

Equity, Allocation, and Unallocated Accounts

Tax Labels do not apply for Equity, Allocation and Unallocated/Clearing account types.

In this case, under Tax Labels, N/A will display.

Example

During the current financial year, Income earned had been recorded against a custom account 26900 - Income - Other Income.

The Tax Label applied is Gross payments where ABN not quoted. This enables users to select between Primary or N/A as the Secondary Tax Label, which corresponds to the Annual Tax Return as below: