From 1 July 2017, the ATO needs you to separate your client's costs in managing their tax affairs into three components:
- Interest charged by the ATO
- Litigation costs
- Other expenses incurred in managing your tax affairs.
We've provided a new worksheet for you. You can record the details and amounts or have it pre-filled from the ATO pre-fill report. See Pre-fill Manager.
Click any of the D10 labels to open the worksheet.
Each section comprises a:
- free data entry row, and
- closed section for pre-filling data from the ATO Pre-fill report you've downloaded.
You insert lines by pressing Ctrl+Insert. You delete lines by pressing Ctrl+Delete.
Totals will be filtered through to the relevant label when you close the worksheet.
Label N: Interest charged by the ATO comprises
- General interest charge (GIC)
- Shortfall interest charge (SIC)
- Late payment interest (LPI)
Label L: Litigation costs include:
- Court and Administrative Appeals Tribunal fees,
- Solicitor, barrister and other legal costs incurred in managing your tax affairs
Label M: Other expenses incurred in managing your tax affairs include:
- tax agent fees for preparing and lodging your tax return and activity statements
- travel to get tax advice from a recognised tax adviser
- obtaining a valuation needed for a deductible donation of property.
- Fees paid to a recognised tax adviser are deductible in the year they are incurred.
- You cannot claim for the cost of tax advice given by a person who is not a recognised tax adviser.
Data can integrate to the cmt from:
the depreciation worksheet (d)
the motor vehicle worksheet (mve).
You can't edit these fields. We'll display amounts you've integrated from a depreciating asset or from a share of motor vehicle expenses.
Press Enter at Amounts from the depreciation worksheet or Amounts from the motor vehicle worksheet to open that worksheet.
If you are using Pre-fill Manager, we'll pre-fill:
- any ATO GIC /SIC/LPI debit amounts at D10: label N
- credit amounts at the item 24 labels Y, X and V.