Managed Fund Tax Statement Reconciliation

Hi @hmof

I’d say to look through this section to find what the $8.23 is made up of. If you haven’t already, reach out to our support team regarding this and we’ll be able to help you directly :+1:

Thanks Jack. As I wrote the $8.23 is exactly the figure under "Non primary production income” on the Vanguard statement, but the instructions on the help site don’t require to put that figure in anywhere on Sharesight. However this results in a discrepancy in the end result.

I do not like the confusing way Sharesight handles EOFY Trust and AMMA statements.

The distribution payment advice was intended to notify the investor of the cash distribution and was never intended to record the detailed source of the income. That is the purpose of the EOFY Trust or AMMA statement.

Yet Sharesight over writes the credible data in the distribution payment advices with fictitious pro-rata data. The complex process provides opportunity for things to go wrong.

The process simply lacks rigour. Fortunately the old fashioned basic method can still be used.

I simply create a new payment for the EOFY statement which is usually 30 June.

I then go through the statement carefully adding components. For AMMA statements the fields are all there but are difficult to find. When the net dividend in the box matches the cash payout on the statement it means success. If they do not match the difference can often hint where the mistake lies.

The distribution advices are no longer needed and can be deleted. If you have a DRP this needs to be added manually. Some DRPs round up, some round down, some carry forward so the advantage of doing it manually is you can enter it precisely from the payment advice with no errors.

I understand it. It is simple. It works for me.

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Here’s part 2 - dealing with linking to Xero
Xero guides - Managed Fund Statements & year-end adjustments (part 2) )

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Totally agree. It is waste of time and counter productive, what Sharesight does. No way tallying with what accountants are doing where they exactly reflect company’s AMIT statements.

My accountant got it easy and their data tallies with AMIT statement fields.

Now I am deleting all trust distributions, reentering for each period and then for the final payment or zero net payment on 30/06, manually enter all AMIT statement fields.

I’ve many many trust statements. I’ve long way to go but I can trust this way than Sharesight.

Very very disappointed. If this is what it is, it is not helping annual tax return time for SMSF at all.

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Particularly for funds, AMIT entry changes already reconciled periodical distribution amounts. That caused lot of inconveniences.
Tax statement reconciliation is okay to some extent for ETF’s but not at all for funds.

To make it effective, following way may be of use for further comments and reconsideration:

  1. Store Tax statement entries filed by field as they’re shown in annual statement.
  2. Do not alter any fields of the distribution entries for that year.
  3. Create new entry called “adjustment entry” showing field by field differences between annual statement fields and total of past distribution fields.
  4. No. 3 and total of no.2 all distribution entries should match Annual statement.

This way, No.3 adjustment entry alone will be new and no other existing entries will be altered and (1) remains as reference entry for tax statement calculations.

Any comments are welcome. Request Sharesight to consider this as High priority item, moving forward so that the product remains suitable and competitive product in all angles.

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Hi @rn233343 @Fractal

Just some points to add here:

We receive data for the below listed ETFs, for any managed funds these need to be manually entered.

The Pro Rata is there mainly to help you keep your CGT and cost base accurate since all that data is only available in your AMMA tax statements. Once your AMIT data is accurate within Sharesight, the CGT report will also be accurate.

Sharesight works best for filing your taxes when you file using the paper form rather than MyTax. I have passed your feedback to our product team for review.

Hi Jack

I understand what Sharesight is doing, what I am trying to understand is why.

We agree the EOFY AMMA statement is a tax statement containing all the taxable components. The question then is why not use it to create a single unambiguous EOFY entry?

Sharesight’s method modifies the cash distribution advice from the ETF. Is that a wise thing to do? It lacks rigour.

If there are 4 distributions for the year that would mean say CGT is pro-rated by 4. I can see rounding errors and people chasing to find the odd cent error. The data now implies the CGT is spread through the quarters. But is that really the case? The ETF may have had all the CGT events in one quarter. But then the quarterly distribution of tax components is of no interest - we are only interested in EOFY. So why do it?

If you wanted to automate it and make it easier for customers the first step could be to have a PDF reader which extracts the relevant Sharesight entry data from the AMMA statement. The AMMA statement is a sea of data and it can be hard to find what you need, e.g. you have to remember you need the grossed up CGT ignoring the discounted CGT and get the AMIT up/down correct. This would not be a trivial exercise since there does not seem to be any sort of standard for statements. The next step could be to load an entry directly for checking.

The cash distribution advices, if recorded in Sharesight would be non-taxable cash income. They would only be used for say adding cash income to a bank account although I am not sure Sharesight does that. The EOFY AMMA would be the taxable entry but the cash income would now be ignored.

You will have gathered that I do manual entry of the AMMA statement. It only takes a couple of minutes and I am happy to keep on doing that. Am interested in any efforts to make it easier which comply with accounting standards.

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