Delayed tax reporting by fund managers is causing headaches for financial advisers and accountants struggling with new deadlines to lodge interim tax returns.
On October 3, Asgard Wealth Solutions distributed a list of fund managers and share funds that were late in submitting 2007 tax returns so it could alert advisers who use Asgard's Advisernetgain system.
As of October 16, 16 managed funds and 39 shares had not yet provided the information that Asgard needs in order to issue tax reports, according to a financial adviser who contacted InvestorDaily.
The St George Bank-owned company told advisers that if a client's account holds any one of these assets, their tax report will be delayed.
"I suspect that Asgard has taken the unusual step of naming and shaming the managers and companies out of sheer frustration," the Perth adviser who declined to be named said.
"Previously the tax accountant or adviser had more time, so the delays were less of an issue. Due to the new [Australian Taxation Office] requirements, this is now becoming impossible."
The adviser said the problem was industry-wide.
Fund managers are waiting to receive audited tax information from the funds they invest in, who are also determining their tax and distribution components.
Tax return lodgement has been brought forward by six months to October 2007, compared to the old system where advisers and accountants were given 10.5 months, the adviser said.
An Asgard spokesman said 95 per cent of tax reports have been issued, which is around the same as this time last year.
The Investment and Financial Services Association (IFSA) said it is aware of the delays in finalising tax distribution statements.
IFSA is lobbying both major political parties for a managed investment tax regime.
It believes this would simplify the tax administration involved in finalising and processing the tax on distributions for the $1.3 trillion managed fund industry.
