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RE: How do I correct an entry for NWS to reflect the gross amount and 15% w/holding tax

scott — Wed, 11 Feb 2009 03:50:31 GMT

Thanks Neil,

I'm not an accountant either but I think you're right. I did see there was problem with the MySF saying the withholding tax was wrong but I followed the advice to ignore that and it worked perfectly.

Thanks

RE: How do I correct an entry for NWS to reflect the gross amount and 15% w/holding tax

PP Super — Tue, 03 Feb 2009 04:54:53 GMT

Hi Scott,

Disclaimer: I am not an accountant!

I queried entering NWS foreign income dividends in my post "Foreign income dividends" (post#4139).

I found entering the NWS dividends as distributions allowed me to input the net dividend in the foreign income box and the tax withheld in the foreign tax credit box.

Eg for a net div of $x and withheld tax of $y the resulting transactions are:
credit $x 4170 Foreign Income, debit $x 110_ Bank account
credit $y 4175 Foreign Tax Credit, debit $y 2220 Foreign Tax Rebate

MySF will then correctly gross up the foreign income (similarly to how franked dividends are treated).

I don't think 4116 is the appropriate account as that is for Australian dividends, whereas Foreign dividends are accounted for in a different section of the return.

(Also if you don't class it as foreign income what do you apply the foreign tax credit against?)

Again, I am not an accountant so you would probably want to check that your accountant is happy with this.

Regards

How do I correct an entry for NWS to reflect the gross amount and 15% w/holding tax

scott — Fri, 30 Jan 2009 03:26:56 GMT

My accountant is not happy with me for just recording the Net NWS dividend paid in $A. The NWS statement had a gross USD amount, a USD withholding tax amount, a net USD payment and a net $A payment. The statement also had a Currency conversion rate on it. How should I record the gross USD payment (in $A) and the witholding tax(in $A). I presume I just notate what the USD figure was.

As I no longer own the stock I suppose I could put through an end of year adjustment to increase the dividend by the 15% tax (cr 4116) and debit foreign tax paid or something like that. What would entry be?

Regards