Tax Return Client Checklist

Last updated June 2011

Companies, Partnerships, Trusts and Other Businesses

At the end of the year, your accountant needs to work out a lot of things for you (examples are below). In order for you to make this process easier, please provide the following information:

• Backup copies of any relevant computer files and advise us of what version of software you are using and any password.
• Bank statements for the period 1 July to 30 June. Alternatively, if a bank reconciliation has been prepared the statement at 30 June should be sufficient.
• Term Deposit notices.
• Dividend slips for dividends received during the year. Alternatively, a summary of dividends received should be provided detailing franked, unfranked and imputation credit amounts.
• Copies of any contract notes for listed or unlisted shares or units in unit trusts purchased or sold during the year.
• Closing stock on hand values at year end.
• List of trade creditors and trade debtors at year end.
• Livestock numbers held at 30th June.
• Details of any debts, which are bad or considered doubtful.
• A copy of the Payment Summary Statement and individual Payment Summaries for employees.
• A copy of your Private Health Insurance Annual Tax Statement.
• Copies of monthly or quarterly Business Activity Statements.
• Any new hire purchase, lease agreements or loans entered into during the year.
• Details of any private portion of expenses (telephone, travel, motor vehicle expenses, light & power etc.)
• Copies of Log Books kept for motor vehicles.
• Copies of legal expenses invoices paid during the year to determine their tax deductibility.
• Details of any donations made during the year to determine their tax deductibility.
• Details of insurance expenses paid during the year.
• Details of any capital asset additions or disposals.
• Details of any business expenses paid personally by directors either by cash or credit card.
• Copies of any recipient generated invoices that relate to your income.

Examples of what your accountant needs to work out:

Income

• Trading income.
• Other income (e.g. rent, interest, royalties).
• Stock on hand (and basis of valuation) – note any obsolete stock.
• Work-in-Progress.
• Primary Producer subsidies (if assessable).
• Details of CGT assets (e.g. stock and real estate) sold, including dates of, and costs associated with, acquisition and disposal.
• Dividends, including details of franking credits.
• Income from foreign sources, including details or foreign taxes paid.

Deductions

• Repairs and maintenance.
• Salaries, including fringe benefits.
• Fringe benefits tax paid.
• Rates, land taxes and insurance premiums.
• Advertising expenses.
• Interest on borrowed monies.
• Deductions relating to foreign source income.
• Prepaid expenses (subject to transitional rules)
• Retirement payments and golden handshakes.
• Bad debts actually written off during the year.
• Donations of $2 and over depending on the recipient.
• Commissions.
• Legal expenses.
• Lease documents for motor vehicles, premises and equipment.
• Losses of previous years (or intra-group transfers).
• Superannuation contributions.
• Subscriptions.
• Car expenses (remember to include petrol, repairs and parking and maintain a log book where necessary).
• Tax agent’s fees and other accounting and tax audit fees.
• Royalties paid.
• Deductibility of any interstate or overseas trip. Note: Expenses must be fully documented where travel involves at least one night away from home. Travel diaries are needed where travel exceeds five nights.
• Research and development expenditure.
• Bank fees (where the credit or deposit represents assessable income).

Liabilities

• New loans taken out during the year and their purpose, including any new lease or hire purchase agreements.
• Statements from the lending authority detailing the opening and closing balances of existing loans during the financial year.
• Provisions for long service leave and annual leave.
• Creditors at June 30
• Details of loan accounts to directors, shareholders, beneficiaries and partners.
• Accrued expenses (e.g. audit fees, interest payments).
• Commercial debts forgiven.

Assets

• Details of depreciable assets acquired and/or disposed of during this income year, including:
  - type of asset;
  - date of acquisition
  - consideration received/paid
• Lease commitments.
• Debtors at June 30
• Commercial debts forgiven.

Additional Information Required

• Franking account details/movements
• Overseas transactions, exchange gains/losses.
• Private companies – remuneration or loans to directors, shareholders and their relatives.
• Changes to the capital of the company.
• Whether family trust elections have been made in relation to trusts.

Note: To ensure that you obtain the maximum deductions to which you are entitled it is important to work closely with your accountant. The more information you can give them, the better off you will be.