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Re: How to correct pre-fill data?

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Hi,

 

We have had a joint trading account for some years now and according to ATO rules this account comes under "share trading as a business". We have reported our profits/losses from the joint trading in our individual tax returns under "Income from Business Partnership" in the past.

 

We formalised this partnership as a "Partnership" business structure, with its own ABN, TFN and business name recently. Therefore, we will be lodging the partnership's tax return this year separately via the "Partnership Tax Return" form. This tax return will capture all profits/losses and deductions.

 

The brokerage firm, with whom we have the joint-trading account, does not recognise "Partnership business structure" for Australia. Hence, we were told we cannot change and should continue using the "joint trading account" to trade. Which is fine by us.

 

The confusion has now risen because the pre-fill data in my tax return says that I need to account for capital gains/losses from selling stocks. It specifically list fair few trades we did under our joint-trading account. 

I dont want to claim the capital gains/losses under my individual tax return because then I will double-reporting (once under Partnership returns and again under capital gains/losses in my tax return) thus paying tax two times.

 

My question is, who/how should I let know that this is double reporting and that the pre-fill data (under capital gains/losses) is wrong?

 

Or is there another way I can get some sort of ruling to state that my joint-trading account belongs to "Partnership business structure"?

 

Thank you,

 

  

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ATO Certified

TaxTime Support

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Hi @dont_know,

 

Thanks for your question!

 

Generally speaking, the pre-fill data that is reported to us comes from third parties. If the data is appearing on your individual income tax return, this is probably because your joint-trading account does not have the partnership's TFN.

 

I appreciate that you have mentioned that your brokerage firm does not accept the partnership business structure. However, if there is any way for you to update the TFN they have on record, this may be the simplest way to resolve the issue in the future.

 

If this cannot be done, you may wish to ask your brokerage firm if there are any letters or other evidence that they can give you to show that this joint-trading account belongs to a Partnership Business Structure.

 

When you lodge your return, you can correct pre-fill data in myTax by adjusting or removing it so that it matches your records, but we may ask you for additional clarification on those changes. 

 

Hope this helps,

 

Rachael B.

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Best answer

ATO Certified

TaxTime Support

Replies 3

Hi @dont_know,

 

Thanks for your question!

 

Generally speaking, the pre-fill data that is reported to us comes from third parties. If the data is appearing on your individual income tax return, this is probably because your joint-trading account does not have the partnership's TFN.

 

I appreciate that you have mentioned that your brokerage firm does not accept the partnership business structure. However, if there is any way for you to update the TFN they have on record, this may be the simplest way to resolve the issue in the future.

 

If this cannot be done, you may wish to ask your brokerage firm if there are any letters or other evidence that they can give you to show that this joint-trading account belongs to a Partnership Business Structure.

 

When you lodge your return, you can correct pre-fill data in myTax by adjusting or removing it so that it matches your records, but we may ask you for additional clarification on those changes. 

 

Hope this helps,

 

Rachael B.

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Thanks @RachaelB 

 

I am trying to get our Partnership TFN registered under the joint-trading account at the brokerage. Hopefully, this should resolve the issue in the future.

 

Meanwhile, for this year's tax-return, should I remove the pre-fill data for this section?

 

Just to be clear, we are lodging a separate tax return for the Partnership as well. 

 

What evidence or documentation would you need for clarification?  (I just want to be prepared because I know this will trigger a 'request for information')

 

Thank you,

 

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ATO Certified

TaxTime Support

Replies 1

Hi @dont_know,

 

Thanks for getting in touch again!

 

For this year's tax return, yes you can remove the pre-fill data for the section if you believe it is incorrect.

 

However, if the paperwork that you have from your brokerage firm notes that the joint trading account still belongs to you, and is still attached to your individual TFN, then this may cause some difficulties.

 

In order for us to help you work out what (if any) supporting documentation is required, you should contact us. It would be best for us to be able to review your account so we can get a better understanding of your circumstances and give you proper guidance.

 

Hope this helps,

 

Rachael B.

Initiate

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Thanks @RachaelB 

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