18Financial statements

18 Financial statements

(1) The trustee of a *private ancillary fund must prepare, or cause to be prepared, a financial report showing the fund’s financial position for each *financial year. The financial report must be prepared in accordance with this section.

Penalty: 10 penalty units.

(2) The financial report must be prepared in accordance with the *accounting standards.

Note: If a fund is required to prepare, and does prepare, a financial report in accordance with Subdivision 60‑C of the Australian Charities and Not‑for‑profits Commission Act 2012, it will have satisfied this section.

(3) All transactions (other than gifts of money) between a *private ancillary fund and a founder of the fund, a *relative of the founder, a donor to the fund, a *relative of the donor, the trustee, a director, officer, *agent, *member or employee of the trustee, or an *associate of any of these entities must be disclosed in the financial report. (4) The financial statements must be prepared before the trustee is required to give to the Commissioner the fund’s *income tax return for the relevant *financial year. (5) The trustee must make the financial report available to the Commissioner of Taxation on request, unless the financial report has already been given to the Commissioner of the Australian Charities and Not‑for‑profits Commission.

Penalty: 10 penalty units.