At the first tier
For the first tier FIF, keep records detailing how you worked out:
- the calculated profit or loss for the current notional accounting period
- any unapplied calculated losses of previous notional accounting periods
- the FIF income that accrued to you. [section 618]
At the second tier
Where a first tier FIF has an interest in another FIF - a second tier FIF - you may elect to use the calculation method at the second tier. If you make that election, you must keep the same records for the second tier FIF that you keep for the first tier FIF. [section 618]
In addition, you may also need access to the underlying accounts and accounting records of the FIF. On audit, these may be called for to support your calculations.
Exempt in a previous year
Where your interest in a FIF was exempt in a previous income year and you elect to use the calculation method for the current year, keep details of the losses from any previous years which are to be offset against FIF income in the current income year.