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Document Description

The Tax Index of Financial Data, or the TIFD in short, is an extensive list of financial statement items where each item is assigned a unique four-digit code.

This tax index was developed to enable the department to collect and process financial information in a structured format.

The TIFD is only part of a larger package of electronic interactive services, which the department is committed to provide.

All companies whose financial year-end is 31 December 2001 or later, must report financial statement information using the TIFD when they submit their tax return.

The guidelines in this booklet provide a number of frequently asked questions, a complete list of the TIFD and instructions on how to use it.

Table of Contents

Part 1 - General Information

• What is the TIFD?
• Why was the TIFD developed?
• How was the TIFD developed?
• Who can use the TIFD?
• What are the Tax reporting requirements of non-trading companies?
• When will the TIFD come into force?
• Why are companies’ financial statements to be submitted in TIFD format for financial years ending December 2001 and later?
• Is the IRD shifting on others work that it currently does itself?
• What are the benefits that can be reaped from these new arrangements?
• Do accountants and auditors need to prepare two sets of financial statements: one for clients and one for the IRD?
• Does the TIFD result in an increase to the reporting requirements?
• If the IRD wants only the same information as is now being reported, why are 500 items included in the TIFD?
• Has the IRD informed companies about the TIFD or is it the accountants’ responsibility to inform clients?
• Does the TIFD impair the present responsibilities between auditors and their clients?
• How is the TIFD structured?
• Why are mandatory fields included in the TIFD?
• If I use a TIFD generic code, will the IRD call for more information?
• What if one line on my financial statements matches more than one TIFD item?
• Will TIFD codes change from year to year?
• What ways are available to file financial statements in TIFD format?
• How do I file the notes to the financial statements with electronic lodgement?
• What about the audit report?
• How do I present the notes if I file a paper copy of the return and financial statements?
• Will there be any changes to the present company tax return?
• What are the prescribed attachments and what purpose do they serve?
• Where can I get more information on the TIFD?

Part 2 - Using the TIFD

• TIFD structure and design
• How to select TIFD items
• Reporting negative amounts
• Reporting the money value irrespective of currency denomination
• Group reporting
• Mandatory items
• Subtotals within the TIFD
• Reporting multiple lines of business
• Reporting an amount that combines two or more items
• Notes to the financial statements

Appendices

1. Complete listing of the TIFD
2. Worked example on the application of the TIFD
3. Multiple lines of business
4. Transitory arrangements