Find out about the CCIV sub-fund trust trustee taxation and penalties and record keeping requirements.
CCIV sub-fund trust trustee taxation and penalties
Under the CCIV regime, the trustee of a CCIV sub-fund trust may be liable to pay tax or administrative penalties, or both, in certain circumstances. The CCIV umbrella vehicle is deemed to be the trustee of a CCIV sub-fund trust .
Trustee taxation
The trustee of an attribution CCIV sub-fund trust will be liable to pay tax when:
- the amount of the determined member component of a particular character that relates to assessable income falls short of the member component of that character
- the amount of the determined member component of a particular character that relates to a tax offset exceeds the member component of that character
- the sum of the determined member components of a particular character that relate to assessable income, exempt income or non-assessable non-exempt income attributed to members is less than the determined trust component of that character
- the trustee has a trust component deficit of a character relating to a tax offset (other than a foreign income tax offset)
- unders of a particular character that relate to assessable income are not properly carried forward
- overs of a particular character that relate to a tax offset are not properly carried forward
- the Commissioner determines that the trustee of a CCIV sub-fund trust derived non-arm’s length income.
For information on the amounts that trustees of CCIV sub-fund trusts are liable to pay income tax on, see Trustee liabilities.
Administrative penalties
The trustee of a CCIV sub-fund trust will be liable to pay an administrative penalty where:
- the trust has an under or an over for the base year which resulted from the intentional or reckless disregard of the law by the trustee
- the trustee fails to give AMIT Member Annual Statements (AMMA statements) to CCIV sub-fund trust members by the required time
- the trustee enters into a scheme to derive non-arm’s length income
- the trustee fails to make certain information available to CCIV sub-fund trust members for an income year.
Record-keeping requirements
If you are carrying on a business, you must keep records relevant for any tax purpose that record and explain all transactions and other acts you are engaged in. Subsection 262A(2) of the ITAA 1936 prescribes the records to be kept, including:
- any documents relevant for the purpose of ascertaining the person’s income or expenditure
- documents containing particulars of any election, estimate, determination or calculation made by the person for tax purposes and, in the case of an estimate, determination or calculation, particulars showing the basis on which and the method by which the estimate, determination or calculation was made.
You must keep these records for your financial arrangements covered by the TOFA rules, even if you are not carrying on a business in relation to those arrangements.
Keep all relevant records for the later of:
- 5 years after they were prepared or obtained
- 5 years after the completion of the transactions or acts to which they relate.
This period may be extended in certain circumstances.
Keep records in writing and in English. You can keep them electronically as long as the records are in a form that we can access and understand to ascertain your tax liability. See, TR 2018/2 Income tax: record keeping and access – electronic records.
Record retention
Keep the following records:
- a copy of the CCIV constitution
- a copy of all resolutions of the corporate director as trustee for the CCIV sub-fund
- detailed statement of assets and liabilities
- the names in which business contracts are made
- a record of the name and contact details of the trustee at year end.
For more information on record keeping for CGT, see the Guide to capital gains tax 2023.
For record keeping information for losses incurred, see TD 2007/2 Income tax: should a taxpayer who has incurred a tax loss or made a net capital loss for an income year retain records relevant to the ascertainment of that loss only for the record retention period prescribed under income tax law?
Record keeping for overseas transactions
Keep records of any overseas transactions in which the CCIV sub-fund trust is involved, or has an interest, during the income year.
The involvement can be direct or indirect, for example, through individuals, trusts, companies or other entities. The interest can be vested or contingent and includes a case where the CCIV sub-fund trust has direct or indirect control of:
- any income from sources outside Australia not disclosed elsewhere on the tax return, or
- any property, including money, situated outside Australia. Where this is the case keep a record of the
- location and nature of the property
- name and address of any partnership, trust, business, company, or other entity in which the CCIV sub-fund has an interest
- nature of the interest.
If an overseas interest was created by exercising any power of appointment, or if the CCIV sub-fund trust had an ability to control or achieve control of overseas income or property, keep a record of the:
- location and nature of the property
- name and address of any partnership, trust, business, company, or other entity in which the trust has an interest.
Lodging a tax return for a CCIV sub-fund trust
For CCIV sub-fund trusts with an income year ending on 30 June, the CCIV sub-fund trust tax return must be lodged on or before 31 October. The Commissioner may allow later lodgment dates in certain circumstances, see Due dates for lodging and paying.
If a CCIV sub-fund trust has derived income, irrespective of the amount of income derived, a CCIV sub-fund trust will have to lodge a tax return unless exempted by the Commissioner.
CCIV sub-fund trusts that are trading trusts within the meaning of Division 6C of the ITAA 1936 (or that otherwise carry on or control a trading business within the meaning of Division 6C) do not qualify to be an attribution CCIV sub-fund trust and do not complete this tax return. Trustees of such trusts must lodge a Trust tax return or, if they satisfy the conditions in section 102P of the ITAA 1936 (public unit trusts) and are a public trading trust for the purposes of Division 6C, a Company tax return.
A CCIV sub-fund trust that meets the AMIT eligibility requirements for the income year must lodge its Attribution CCIV sub-fund tax return electronically.
Annual investment income reporting
Managed investment trusts, including attribution CCIV sub-fund trusts, are required under section 393–10 of Schedule 1 of the Taxation Administration Act 1953 (TAA) to lodge an Annual investment income report (AIIR) if they made distributions to members during the year. The report requires details of distributions, including the name and details of the payer, amounts attributed and the names and details of the payees.
All AIIR lodgements for the 2022-23 income year must be submitted in accordance with the new specifications as outlined in Lodging the AIIR.
Continue to: Completing the Attribution CCIV sub-fund tax return