Tax Statement Information
General Information
Investors are encouraged to file their taxation statements in a safe place for future reference.
Taxation statements will only be sent to investors and their financial advisers. Viento recommends that other parties who require a copy of an investor's taxation statement contact the investor (or financial adviser) directly. Third parties may obtain a copy of an investor's taxation statement only if specific written consent from the investor is provided at the time of request.
Replacement copies may be obtained by emailing a request to info@vientogroup.com. Requests will be processed within five (5) business days.
2010/2011 Financial Year End
Investors in the Viento Diversified Property Fund, Henley Brook and Southern River Syndicates did not have taxable income during the 2010/2011 Financial Year. As a result, they received a statement of holdings in July - in lieu of a taxation statement.
Investors in the New Enterprise, Metro and Première Property Syndicates received their tax statements in September 2011.
New Enterprise Property Syndicate
A capital gains event has occurred due to the disposal of the Mundaring and Cove Hill properties during the last financial year. The disposals have been in line with the sell down strategy as approved by investors at the 28 May 2010 Unitholder Meeting.
The financier requested full net proceeds from the disposals to be applied to reduce the outstanding debt, and therefore no funds were available for a distribution to unitholders.
2009/2010 Tax Statements
New Enterprise Property Syndicate
Investors will note that although they did not receive a cash distribution during 2009/2010 financial year, their statement shows a component of taxable income. This is due to the trust structure in which the Syndicate's properties are held.
During the 2009/2010 financial year both the Mundaring and the Cove Hill properties, which are held within Trust 2, produced income. As investors are aware, the income which was produced by these properties was used to support the Artarmon property, held within Trust 1, because it was producing no income and could not support its annual costs (i.e. debt repayments, statutory charges, incidental property costs).
Under the Income Tax Assessment Act, taxable income is passed on to the unitholders in the trust whilst the taxable losses are quarantined to offset future profits and cannot be distributed to unitholders. This has caused the unsavoury position of investors not receiving a cash distribution during the year yet the annual taxation statement showing a component of taxable income.
Première Property Syndicate
Investors will note on their 2009/2010 statement that the taxable income component is higher than the distributed cash component. This is due to the $1 million litigation settlement received during the financial year.
Under the Income Tax Assessment Act the settlement funds are classified as income received and are taxable in the hands of the unitholder.
As per the Syndicate extension resolution, 50 per cent of the settlement funds was required to be paid to NAB to reduce the Syndicate's debt and the remaining 50 percent of funds are being held within the Syndicate for capital expenditure on the Rockingham property. This has meant that the taxable income of the Syndicate is higher than what was able to be distributed which is reflected on the 2009/2010 annual taxation statement.