Our Fund has Accumulation and Pension Accounts. All investments are unsegregated. On Creating Entries Income Tax Expense is successfully allocated to Accumulation Members on the basis of their Weighted Balance. However, the Foreign Tax Offset is not done in the same manner. Two Members appear to have their Weighted Balance utilised but the third Member seems to have their Weighted Balance plus the Weighted Balance of all the Pension Accounts used. The result is that the third Member receives more than their share of the Foreign Tax Offset to the detriment of the other two members. There does not seem to be any way to correct this anomaly. During the Create Entries process there is the ability to modify Profit and Tax Allocations with the Member Allocation Sheet but no provision for the Foreign Tax Offset Allocation. Any comments would be appreciated.
The allocation of the foreign tax offset during the create entries process will use the accumulation member weighting only.
Please refer to the Allocation of income tax expense section in the create entries report for the correct breakdown.
However, as per your feedback the section in the create entries report Allocation of Foreign Tax Offset to Members is incorrectly showing a higher allocation to one of the members. This is a known issue, the Simple Fund 360 team will aim to get this fixed in the near future, please note that the actual allocation entry is based on the accumulation weighting, and it is just the Create Entries report that needs to be updated to use the correct percentages