International Dealings Schedule 2012 working group
The IDS 2012 working group held a teleconference on 15 February 2012 to obtain an update from the ATO on a number of matters.
The ATO webpage on the new International Dealings Schedule 2012 was discussed. It includes current information on the IDS 2012 which replaces the previous Schedule 25A, Thin capitalisation schedule and the IDS-FS (Financial Services) 2011. The ATO confirmed that the final unpublished versions of the IDS 2012 and its supporting instructions will be available in March 2012 on this webpage, for information only (as it cannot be used lodgment).
The timetable for the posting of the published version of the IDS 2012 including the procedures for early balancers lodging before 1 July 2012 is set out on the webpage. Specifically, it states that 'if lodging earlier than 1 July 2012, prior year stationery ('that is, whether they need to complete both Schedule 25A and the Thin Capitalisation Schedule or one of them only') can be used. The ATO advised that what will need to be completed will depend on the taxpayer’s circumstances. That is, whether they need to complete both Iand the Thin Capitalisation Schedule or one of them only. Early balancers who were required to complete the IDS-FS in 2011 should complete that schedule in lieu of the Schedule 25A in 2012.
'Early balancers' are those with an approved substituted accounting period with a balance date of 31 December 2011 or 31 March 2012.
If lodging on or after 1 July 2012, IDS documentation will be available in both electronic and paper formats.
The ATO confirmed that the new $2 million threshold for international related party dealings will apply rather than the Schedule 25A $1 million amount even where the Schedule 25A is being used by early balancers.
The ATO are planning to do a Frequently Asked Questions (FAQ) soon. They have welcomed queries to be sent to firstname.lastname@example.org.