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RE: Tax assessment amendments

chaudhri — Fri, 23 Apr 2010 22:21:15 GMT

Sprry for the delay in replying.

I followed your suggestion and this was acceptable to the fund auditor.

Thansk

Vik

RE: Tax assessment amendments

MySF2 — Mon, 01 Feb 2010 19:40:21 GMT

Hi,

The issue here is that you cannot really make this amount disappear. It needs to be journalled to another account, which will change in balance as a result.

You can post a transaction to a non taxable expense account as you suggested. This transaction should be a general journal with the following entries:

DR 2120 Income tax payable $x
CR $x
where $x is the balance of account 2120.

Please let us know if this helps.

Regards,

MySF

RE: Tax assessment amendments

chaudhri — Sun, 31 Jan 2010 23:46:07 GMT

Thanks, however the amendments were made either as a result of non-taxable transactions being allocated to taxable contribution accounts in previous years. The amendment relating to tax owed was because carried forward losses incorrectly reduced taxable income. After an audit, an amended notice for that year was issued.

Anyway, now that the balance sheet indicates the incorrect amount of tax payable how do I get rid of this amount. Is it possible that I post a transaction to a non-taxable expense account to make the correction?

Regards

RE: Tax assessment amendments

MySF2 — Sun, 31 Jan 2010 23:05:31 GMT

Hi,

The use of account 2120 is actually correct.

The tax refund is cash flow in, but does not count as income to the fund.

The tax refund should have been the same amount as what was calculated as due to you and these should therefore have netted off to zero. When the software calculates that the tax office owes you a refund of say $500 then this is stored as a credit in 2120, and when you receive the money it is posted as a debit of also $500. The two cancel out at the balance is zero.

Is there a difference in the amount calculated by the software and the amount you actually received as a refund?

Regards,

MySF

RE: Tax assessment amendments

chaudhri — Fri, 29 Jan 2010 01:30:08 GMT

Could you please advise how I should have made these tax assessment amendment entries in MySF?

Thanks

RE: Tax assessment amendments

chaudhri — Wed, 27 Jan 2010 02:26:28 GMT

Yes, I did this for three tax refunds for amendments for past years assessments. I did the opposite for one assessment amendment where the fund owed the ATO. So all the general journals I've done for these four transactions have the 2120 ledger account on one side balanced with the bank account on the other. I suppose I've got it wrong.

Thanks

Vik Chaudhri

RE: Tax assessment amendments

MySF2 — Tue, 26 Jan 2010 21:29:31 GMT

Hello,

Sorry about the delay in responding to this post.

Do you mean that you received a tax refund and posted it as a negative amount to tax payable, and increased the bank account by the same amount?

Regards,

MySF

Tax assessment amendments

chaudhri — Wed, 20 Jan 2010 13:40:17 GMT

For amended tax assessments of previous years, I made general ledger entries for shortfall in tax paid and some tax refunds. I used the bank account and liability account 2120 (Income tax payable). Now these amounts are included in the balance sheet under tax payable. My fund's auditor requires these to corrected.

Could you advise how amended tax assessment amounts (refunded or paid) should be treated in MySF.

Thanks