Trust Tax Reconciliation workpaper (TSA)

How TSA reconciles a trust's accounting profit to taxable income and distributes both between beneficiaries.

The Trust Tax Reconciliation (TSA) workpaper calculates a trust's taxable income. It starts from the accounting profit, applies tax adjustments using the Trial Balance, COA Mapping and supporting workpapers, and then distributes accounting and taxable profit between the trust's beneficiaries.

Availability

TSA populates only for Trust entities.

Profit per P&L

• Profit per P&L is calculated from all accounts mapped to Income and Expense categories.

• Click Edit Mode to review the accounts that are included. Each account has a checkbox, and unticking it removes that account from the calculation. Profit per P&L recalculates immediately.

• Accounts mapped to the following Zato Parent Codes are unticked by default:

◦ Prior Period Losses Applied

◦ Dividend Paid

◦ Distribution of Profit

◦ Income Tax Expense/(Benefit)

Add back: non-deductible expenses

Where the data is available, these adjustments are populated automatically:

Adjustment	Source
Imputation Credits (General)	Formula / Investment Summary workpaper
Depreciation – Accounting	Fixed Assets (FIA) workpaper
Donations – Non-Deductible	Other Expenses (OTE) workpaper, Donation table
Entertainment – Non-Deductible	Other Expenses (OTE) workpaper, Entertainment Non-Deductible table
Fines & Penalties	Trial Balance / COA Mapping
Superannuation Payable This Year	Superannuation Payable (SPP) workpaper
Superannuation Paid Late – Non-Deductible	Superannuation Payable (SPP) workpaper

These items are flagged Human Intervention Required and must be entered manually:

• Provision for Annual Leave (Current Year)

• Provision for Long Service Leave (Current Year)

• Trade Debtors Last Year (Ex-STS)

• Trade Creditors This Year (Ex-STS)

• Accruals This Year

• Taxable Distributions – Net Australian Income

• Taxable Distributions – Net Franked Distributions

• Imputation Credits from Distributions

• Net Foreign Income

• Foreign Tax Credits

• NZ Franking Credits

• Capital Gain – Taxable

• Capital Loss – Accounting

Less: tax adjustments

These items are flagged Human Intervention Required:

• Depreciation – Tax

• Section 40-880 Deduction

• Provision for Annual Leave (Prior Year)

• Provision for Long Service Leave (Prior Year)

• Trade Debtors This Year (Ex-STS)

• Trade Creditors Last Year (Ex-STS)

• Accruals Last Year

• Skills & Training Boost (20%)

• Capital Gain – Accounting

These values are populated automatically:

Item	Source
Prior Year Revenue Losses Utilised	Revenue Losses Schedule
Prior Year Capital Losses Utilised	Capital Losses Schedule

Capital loss check

Prior Year Capital Losses Utilised cannot exceed the Taxable Capital Gain. If it does, the workpaper shows "CHECK AMOUNT OF CAPITAL LOSSES TO BE UTILISED". You can then correct the values.

Distribution of profit / loss

• Enter a distribution percentage for each beneficiary. Multiple beneficiaries are supported.

• Accounting Profit and Taxable Profit are distributed automatically, based on those percentages.

• The percentages remain editable.

Human Intervention Required

Human Intervention Required is shown when:

• a supporting workpaper is not available

• a value cannot be derived automatically

• professional tax judgement is needed

• a manual tax adjustment is necessary

Note: A missing supporting workpaper shows Human Intervention Required instead of causing a calculation error. You can override any editable field, and the automated calculations are kept.

How to access

• Go to Jobs and open the relevant job.

• Click the Workpapers icon or navigate to Job Results then Workpapers.

• Select TSA on the Workpapers Dashboard.