Thefollowing Incometaxreturn(ITR)Checklistshouldbecompleted Inconjunctionwiththe

2017CompanyTaxReturnPreparation Checklist

Thefollowing incometaxreturn(ITR)checklistshouldbecompleted inconjunctionwiththe preparationoftaxreconciliation returnwork-papers.Thechecklistprovidesagenerallistofmajor issuesthatshouldbeaddressed.

Thechecklistis notdesignedtobeanexhaustivelist of all issuesthatmaywarrantconsideration.

NAMEOFENTITY:[insertname]

A. PriorYearTaxReturnConsiderations Yes No N/A
A1. Haslastyear’staxreturnbeencheckedforreversingtime
differences(e.g.:accrualsandprovisions)?
A2. Haslastyear’staxreturnbeencheckedforrecurringtime differencesthatmayneedconsideringin thecurrentyear(e.g. amortisationofcomputersoftwareandblack-holeexpenditure deductibleinaccordancewiths40-880of theITAA1997)?
A3. Haslastyear’staxreturnbeencheckedfortaxlossesandcapital
lossesforcarryforwardtothecurrentincome year?
A4. Haveyoucheckedtheprioryearactionsheetforprioryearcarry forwardissues?
Comments:
B. StatementofFinancialPosition(BalanceSheet) Yes No N/A
General
B1.Haveallbalancesheetitemsbeenreviewed(e.g.:deductibilityof consumablestores,write-offs,assessablilityofdeferredincome, taxtreatmentof billsofexchange)?
B2.Haveallmovementsin provisionsbeenadjustedfor(e.g. provisionforannualleave,longserviceleave,obsoletestock, doubtfuldebts)?

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B. StatementofFinancialPosition(BalanceSheet) Yes No N/A
B3.Havesundrycreditorsbeenreviewedforaccruals/provisions whichhavenotbeenlegallyincurredbyyearendandfornon- deductibleaccruedexpenditure(e.g.:accruedauditexpenditure andaccruedsuperannuationexpenditure)?
B4.Havesundrydebtorsbeenreviewedforprepaymentsandaccrued income(e.g.:interestreceivable)?
B5.DoesaccruedFBTrepresenttheFBT instalmentpayablebythe companyinthemonthprecedingyearend(whichis therefore deductibleasperTR95/24)?
Division7A
B6.Forprivatecompanies,haveloans,paymentsanddebt forgivenesstoshareholdersortheirassociatesbeenconsidered in lightof thedeemeddividendrules in Div.7A of theITAA
1997?
Prepayments
B7. Haveallprepaymentsof lessthan$1,000beenclaimedasan immediatetaxdeduction?
B8.Haveallprepaymentsrequiredtobemadebylawor underan orderofacourt(e.g.:prepaidWorkCoverexpenditure)beenclaimed asan immediatetaxdeduction?
B9.Haveallotherprepaymentsofmorethan$1,000beencapitalised andapportionedovertheeligibleserviceperiodto whichthe prepaymentrelates (note this does not apply to small business entities)
TradingStock
B10. Doesthecompanyhavetradingstock?
B11. Doestheopeningbalanceof tradingstockfortaxpurposesagree withtheclosingbalanceoftradingstockinlastyear’sincometax return?
B12. Istheclosingstock valuationmethodadoptedbythecompany acceptableforbothaccountingandtaxpurposes?
Ifnot,canthetax valuationbe justifiedand is itadequately documented?

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B. StatementofFinancialPosition(BalanceSheet) Yes No N/A
B13. Hasthecompanydisposedofanytradingstockoutsidethe normalcourseof business?If so,hasthemarketvalueofthe tradingstockonthedayofthedisposalbeenincludedinthe company’sassessableincomeinaccordancewiths 70-90ofthe ITAA1997?
B14. Wherestockis valuedatcostprice,isafullabsorptioncosting basisbeingused?
B15. Hasthetreatmentof goods-intransitandconsignmentstockbeen consideredinthe valuationof tradingstock?
B16. Hasadeductionbeenclaimedforconsumablestoresonhandat balancedate?
Debt/Equity
B17.Hastheapplicationof thedebt/equityrules inDiv974of ITAA1997 beenconsideredinrelationtoanyhybridsecuritiesissuedbythe company?
Comments:
C. StatementofComprehensiveIncome(ProfitandLoss) / Yes / No / N/A
General
C1. Haveyouconsideredwhetherthetotalprofit/lossatItem 6label reconcilestotheprofitandlossstatement?Ifnot,determinethe natureof thedifference(e.g.: incomefrom overseasbranchesor subsidiariesshouldbeexcluded).
C2. Haveexpensesbeenreviewedgenerallyfornon-deductibleitems (e.g.fornon-deductibleentertainment,privateexpenses,donations madetoentitieswhoarenotdeductiblegiftrecipients, subscriptionstoprivatepublications,capitallegalexpenses)?
C3. Haveoperating/financeleasesandhirepurchaseagreements beenproperlytreatedfortaxpurposes?
C4. Forinterestclaimed,hasthedeductibilityoftheinterestbeen consideredinthelightof theuseof borrowedfunds?

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B. StatementofFinancialPosition(BalanceSheet) Yes No N/A
C5. IftheATOnotifiedyouof a SICorGICliability,hasthisbeen claimedasadeduction?
C6. Havepenaltiespaid(excludingGICorSIC)totheATOoras otherwisechargedunderanAustralianorforeignlawbeentreated asnon-deductibleandinterestreceivedfrom theATObroughtto accountasassessable?
C7. Hasthetreatmentof discountsonshort-termsecurities(e.g.:billsof exchange,promissorynotes)beenconsidered?
C8. Hasinterestreceivedbeen grossedupforanyTFN withholding taxdeductedandaclaimmadefortheamountdeducted?
C9. Hastheentityderivedincomethatis exemptfrom taxorwhichis non-assessablenon-exemptincome(e.g.:foreignsourcenon- portfoliodividends)?
C10. Fortravelexpenses,havetraveldiariesbeenkept(where applicable)alongwithothersupportingdocumentation?
C11. Hasthetimingof incomeandexpenditurebeenconsideredfor long-termconstructioncontracts?
C12. Hasthepotentialdeductibilityofexpenditurewhichhas been capitalisedforaccountingpurposes(e.g.:capitalisedinterest)been considered?
C13. Aremanagement/consultancyfeespaidto relatedentities commerciallyrealisticandsupportedbyappropriate documentation?
DeclineinValue(Depreciation)
C14. Haveyouensuredthis year’staxopeningbalanceagreeswith
lastyear’sclosingbalance?
C15. Hastheeffectivelifeof newacquisitionsbeenreviewed?
C16. Hasthebalancingadjustmentfordisposedorscrappedassets beenreviewed?
C17. Haverepairsexpensedforaccountingpurposes,butcapitalised fortaxpurposes,beentreatedasadditionstothetaxfixedassets scheduleanddepreciated?

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B. StatementofFinancialPosition(BalanceSheet) Yes No N/A
C18. Haveadditionstobuildingsandconstruction-in-progressbeen reviewedto ensuredepreciationhasbeenclaimedonunitsof depreciableplant?
C19. Forconstructionofnewincome-producingbuildingsorfor extensions,alterationsorstructuralimprovements,is acapital worksdeductionavailableunderDiv43of ITAA1997? Note the clawback when the property is sold
C20. Hasscrappedplantandequipment(forwhicha deductionhas beenclaimed)beenphysicallyscrappedorsetasidefor scrapping,duringtheyear?
C21. Hasthemotorvehicledepreciationcostlimitof$57,581been appliedwhencalculatingdepreciation?
C22. Hasanyprofitonthesaleof previouslyleasedmotorvehicles beenbroughttoaccount?
C23. Haveplantconversionandrelocationcostsbeencapitalisedand depreciated?
C24. Ifthecompanyis a smallbusinessentity,haveassetscosting lessthan$20,000 and acquired from 13 May 2015 beenwrittenoff immediately. Have assetscosting morethan$20,000beenput intothegeneralsmallbusinesspool?
C25. Ifthecompanyis a smallbusinessentity,hasthe balance of the small business pool been written off where it is less than $20,000?
C26. Ifthecompanyis notanotsmallbusinessentity,haveassets costinglessthan$1,000beenincludedin alow-value depreciationpool?
C27. Doanyitems of capitalexpenditurequalifyunderthe“blackhole”
expenditurerulesins 40-880of theITAA1997?
DisclosuresarerequiredtobemadeatITRItems9 and10 inrelationto depreciatingassetsand depreciationclaimedin relationtosmallbusinessentities.

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B. StatementofFinancialPosition(BalanceSheet) Yes No N/A
ForeignresidentCompanies
C28. Hasincomefrom onlyAustraliansources/permanent establishmentsbeenincluded?
C29. Haveapplicabledoubletax treatiesbeenconsidered,particularly thebusinessprofitsarticleunderwhichincomeandexpensesare attributedtoapermanentestablishment?
C30. Forcompaniesthatdonothavea permanentestablishmentin Australia–havedividends,interestandamountsattributedtoMIT fundpayments(thatarefrankedorsubjecttowithholdingtax) beenexcludedfrom thecalculationof taxableincome?
C31. ForcompaniesthathaveapermanentestablishmentinAustralia
–haveinterest,amountsattributedtoMIT fundpayments, dividendsandtheirfrankingcredits(thatarenotsubjectto withholdingtax)beenincludedinthecalculationof taxable income?
C32. HasthecompanyanyCGTexposureinrelationtothedisposalof
“taxableAustralianproperty”duringtheincome year?
Superannuation
C33. Haveallsuperannuationcontributionsclaimedfortheyearbeen paidto thefundbeforeyearend?Ifnot,haveaccrued superannuationcontributionsbeenaddedback?
C34. Hastheentityprovidedtheprescribedlevelofsuperannuationfor eachemployeepursuantto the SuperannuationGuarantee Scheme?
C35. HasaSuperannuationGuaranteechargeamountbeenpaidby theentity?If so,hastheamountbeenaddedbackasnon- deductible?Ifalatesuperannuationcontributionwasoffset againstthesuperannuationguaranteecharge,theoffsetamount is notdeductible.
Note:directorsofacompanycannowbeheldpersonallyliable forunpaidsuperannuationguaranteeamounts
CapitalGains
C36. Hasthecapitalgainscalculationbeenreviewedforcorrectness?

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B. StatementofFinancialPosition(BalanceSheet) Yes No N/A
C37. Havethenecessaryadjustmentsbeenmadewherethe accountinggain/lossdoesnotequalthecapitalgain/lossfortax purposes?
C38. Haveyouconsideredtheunrealisedlossrulesin Subdivision165-CC oftheITAA1997in relationtothedisposalofCGTassetsthat wereheldwhentherewasa changeinownershiporcontrolofthe company?
C39. Haveyouconsideredwhethercapitalgains canbe reduced/eliminatedin accordancewiththesmallbusinessCGT concessions?
C40. Haveyouconsideredwhethercapitalgainsmadeinrelation to sharesinforeigncompaniescanbereduced/eliminatedunder Subdivision768-GoftheITAA1997
RepairsandMaintenance
C41. Haverepairsandmaintenanceclaimsbeenreviewedtoensure theyareof arevenuenatureandcontainnocapitalitems?
TaxationofFinancial Arrangements(TOFA)
C42. Haveyouconsideredtheapplicationof the TOFArulesin Div230of theITAA1997to the company?
BadDebts
C43. Havebaddebts writtenoffduringtheyearbeenclaimedasatax deduction?
C44. Forbaddebtsclaimedasdeductionsduringtheyear:

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B. StatementofFinancialPosition(BalanceSheet) Yes No N/A
Hasthedebtbeenphysicallywrittenoff priorto balancedate,or is thereaBoardminuteauthorisingthe writing-offofthedebt priortoyearend?
Hasthedebteitherpreviouslybeenreturnedas assessable incomebythecompanyordoesitrepresentaloanmadeinthe ordinarycourseof amoneylendingbusiness?
Hasthecompanysatisfiedthecontinuityofownershiptestor, alternatively,thesamebusinesstest duringthe periodfrom whenthedebtwascreatedtowhenthedebtisproposed tobe writtenoff asbad?
Comments:
D. TaxReturnFormCompletion / Yes / No / N/A
StatusofCompany(Item3)
D1. Hastherelevantdisclosurebeencompletedforaconsolidated headcompanyora subsidiarymemberthereof wherethe subsidiarymemberis completingapartyearreturn?
Note:RefertotheATO’s“Incometaxreturnsand consolidation”instructions.
Is the company a small business entity (reduced tax rate)
InterposedEntityElectionStatus(Item4)
D2. Hasthecompanymadean interposedentityelection(IEE)?
Note:Acompanymaybe requiredto makeanIEEtobeincluded inthefamilygroupofatrustthathasmadeafamilytrustelection. Wherea trustthathasmadeafamilytrustelectiondistributes incomeorcapitaltoacompanythathas notmadeanIEE and is not otherwise part of the family group,the distributionmaybesubjecttofamilytrustdistributionstax(FDT),a taxof49%leviedonthetrusteeofthefamilytrust.Notethat distributionsbya companythathasmadeanIEEof incometo entitiesoutsidethefamilygroupmayalsoattractFDT.

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D. TaxReturnFormCompletion / Yes / No / N/A
FinancialandOtherInformation(Item8)
D4. Havealltheappropriatedisclosuresbeenmadeat ITRItem 8?
D5.Whereapplicable,hasthecompanydisclosedloansprovided duringtheyeartoshareholdersorassociatesofshareholderswho arenaturalpersons,partnershipsortrusts?(ITRItem8labelN)
D6.Hasthecompanydisclosedallpaymentsmadeduringtheyear (includingsalaries,wages,commissions,superannuation contributionsandallowances)torelatedpersons?(ITRItem 8 labelQ)
SmallBusinessEntitySimplifiedDepreciation(Item10)
D7. Isthecompanyasmallbusinessentity?If so,havethe appropriatesmallbusinessentitydepreciatingassetsandsmall businessdepreciationclaimbeendisclosed?
Consolidationdeductionsrelatingto rightstofutureincome,consumablestoresandworkin progress(Item11)
Is the company entitled to the National Rental Affordability Scheme tax offset? (Item 12)
LossesInformation(Item13)

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D. TaxReturnFormCompletion / Yes / No / N/A
D8. Havethecontinuityof ownershipand/orsamebusinesstestsbeen reviewedto ensurethecompanycandeductitsprioryeartax losses/capitallossesandbaddebts?
D15. Doesthecompanyhave totaltaxlossesandnetcapitallossesin excessof$100,000?If so,hasa lossesschedule NAT 3425 orconsolidated grouplossesschedulebeencompleted?
D16. Doestheheadcompanyof aconsolidatedgroupormultipleentry consolidatedgrouphavetransferredtaxlossescarriedforwardto
2016-17greaterthan$100,000andmorethan$100,000of thoselosseswerecontributedbya singleentity?
If so,hasaconsolidatedgroupstransferredtaxlossesschedule beencompleted?
PersonalServicesIncome(ITRItem14)
D18. Doestheincomeof thecompanyincludeincomewhichis an individual’spersonalservicesincome(PSI)?Ifyes,hasthe companycompleteda personalservicesincomeschedule?
Note:PSI is includedin theindividual’spersonalincometaxreturn where the company is not carrying on a personal services business.PSI is incomethat is mainlyarewardforan individual’spersonal effortsorskills.
ResearchandDevelopmentTaxIncentive(ITRItem21)
D20. HaveyouconsideredwhetherthecompanyisanRDentity whichis eligibleforan RDtaxoffset?
Note:tobeeligiblefortheoffsetthecompanymustbean RDentity engagingineligibleRDactivitiesandwitha notionalRDdeductionof atleast$20,000.Beforeclaimingtheoffset,checkthatthecompanyhas registereditsRDactivitieswithAusIndustry.
D21. HasaResearchandDevelopmentTaxincentiveSchedulebeen prepared?Thisis requiredwhenITRItem 21labelsAorUare completed.
D22. Does the company qualify for the Early stage venture capital limited partnership tax offset? (Item 22)
D23. Does the company qualify for the Early stage investor tax offset (Item 23)
D24. Does the company sell any of its goods or services via the internet? (Item 24)
ReportableTaxPosition(Item25)
D25. HasthecompanybeenadvisedbytheATOthatit is requiredto lodgeaReportableTaxPositionSchedule?
D. TaxReturnFormCompletion / Yes / No / N/A
OverseasTransactionsorInterests/ThinCapitalisation/ForeignSourceIncome(ITRItems26–
30)
D26. Ifthecompanyhascrossborderdealings,hasDiv.815ofITAA
1997beenappliedtodeterminewhetherthecompanyhas obtaineda transferpricingbenefitwhichmustbeaddressedby applyingarm’slengthconditionstothosedealings?
D27. Ifthecompanyhascross-borderinvestmentsanddebt(interest) deductionsexceeding$2m,itmaybenecessarytoconsider whetherthethincapitalisationrulesinDiv.820of ITAA1997 apply.
D28. Whereapplicable, hasanInternationalDealingsSchedule been prepared?(Requiredwhere‘Yes’ is answeredtoITR Items27,28 or 29)
CalculationStatement
D29. Havealltheapplicablenon-refundablenon-carryforwardtax offsetsbeenincluded(e.g.:foreignincometaxoffset)?(LabelC)
D30.Havealltheapplicablenon-refundablecarryforwardtaxoffsets beenincluded(e.g.:RDtaxoffset)?(LabelD)
D31.Haveallrefundabletaxoffsetsbeenincluded?(LabelsEandI)
D32.Havealleligiblecreditsbeenincluded(e.g.:imputationcredits)? (Labels F andH)
D33.HaveallPAYGinstalmentspaidduringtheyearbeenincluded? (LabelK)

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E. OtherTaxOfficeForms/Elections Yes No N/A
TaxConsolidation
E1. Isthecompanyamemberofawholly-ownedgroupof companies?Ifyes,havethebenefitsofenteringthetax consolidationregimebeenconsidered?
E2. Haveanymembersoftheconsolidatedgroupleftduringthe year and,if so,hastheATObeenappropriatelynotified?(Notethatthe ATOis requiredto benotifiedwithin28daysofanentityleaving thegroup)
NoticesandElections
E3. Havealltherelevantnoticesand/orelectionsreliedonbythe entitybeenproperlyprepared?
E5. Haveallnoticesand/or elections,wherelodgmentis not required,beenappropriatelysightedand retainedonrecord?
DividendImputation/FrankingAccount
E6. Hasthefrankingaccountbeenpreparedinaccordancewiththe imputationrules?
E7. Hasthefrankingpercentageappliedtothefirstdistributionbeen appliedto allotherdistributionsmadeduringtheperiod?
E8. Ifthereis greaterthan20% varianceof thebenchmarkfranking percentagebetweenfrankingperiods,hastheATObeennotified?
E9. Isthereafrankingdeficitatyearend?If so,is thecompanyaware thatafrankingaccountreturnmustbe lodgedtogetherwith frankingdeficittaxpayablewithinamonthof theendof the frankingyear?
E10. Hasthe45/90dayrulebeenconsideredinrelationtodividends receivedbythecompany?
InternationalDealings
E11. Hasallassessableforeignsourcedincomebeenidentifiedand returnedasassessableincome?If so,hasforeignincomebeen grossedupfortheappropriatetaxes?
E12. Haswithholdingtaxbeendeductedfrom interest,royaltiesand unfrankeddividendspaidtoforeignresidentsoroffshore/foreign
‘branches’ofresidentcompaniesduringtheyear?

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E13. Havemanagementfees,softwarelicencefeesetc.paidto overseasentitiesbeenexaminedtodeterminewhethertheyare withinthedefinitionof royalties?
E14. Haveinsurancepremiumsbeenpaidbytheentityto foreign residentinsurers?If so,hastheappropriateamountbeen deductedandareturnbeenfurnishedin respectof theforeign premiumsasrequiredunderDiv.15ofPtIII of theITAA1936?
E15. Haveyouconsidered whether the companyisan“attributable taxpayer”in relationtoa controlledforeigncompanyunderPtX ofITAA1936?
E16. Haveyouconsideredthe‘transferortrust’rulesinDiv.6AAAof Pt IIIof ITAA1936inrelationtothe attributionofforeignsource income?
ValueShifting
E17. Havethevalueshiftingrulesbeenconsideredinrespectof anyof thefollowing?
 Acquisitionsordisposalsofequityordebtinterestsinthe
company(orthecompany’ssubsidiaries,ifappropriate)
 Creationof rightsinnon-depreciatingassets
 Non-arm’slengthdealingswithrelatedparties.
E18. Hasthecarry-forwardactionsheet(attachedtothischecklist)
beencompleted?

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NAMEOFENTITY:[insert]

YearEnded30 June2016

CARRY-FORWARDACTIONSHEET

Date / ItemCarriedForward / $ / Working
PaperRef / Checkedby
Netrevenuelossescarriedforward
Netcapitallossescarriedforward
CGT smallbusinessrolloveramount
OtherCGTrollover
Otherassessableincomeamount
Otherdeductibleexpenses(egprepayments)
Frankingaccountbalance

POINTSFORREVIEW

Date / ReviewPoint / Checkedby

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