How to enter a Company Tax Refund
Peter Eggins
Member Posts: 4 Novice Member
We just received a Company Tax refund from the ATO for 2012/2013. Is it correct to enter this by Manage Tax>Tax Refund? I notice the value in the Current Tax Liability Account is also reduced.
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Comments
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Hey Peter,
Welcome to the Community.
Where you process tax entries all depends how you have individually set up your books.
By default 'Tax Refund' relates to GST refunds, but if you are processing all taxes from Tax payable/receivable, the 'Tax refund' method would be appropriate.
Otherwise, if you have created a separate expense account for company taxes,the best way to process refunds is to use the 'make deposit' option into the account you paid the tax from.
Cheers,
Mirko
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How do I backup to drop box in Hosted?
Oswald
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Hey Nantasa, welcome to the Community. At this point in time there is no direct connection from Hosted to Drop Box. You would need to save to local drive and then from there upload to drop box. This would be a great tool, so I will pass it onto development to investigate! - Mirko
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This reply was created from a merged topic originally titled I have received an Income Tax refund from the ATO.. I have received an Income Tax refund from the ATO. Do I record this as a current asset? As I cannot refund to the Tax Payable Liability as this is only for GST.0
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Hey HiT, please see existing thread regarding entering Tax Refunds. Thanks, Mirko
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Hi - I used the tax refund (deposit into bank account) but noticed it actually increases the tax liability account? Shouldn't it reduce it?0
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Just a quick hint , normally your Tax Agent would have done a journal entry that will debit money owed to coy by ATO .So all you do is dr BANK CR this this debit owing. talk to you tax agent.
Cosmic Accounting Group
Accountants and Tax Agents 22397009
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Thanks but why would they need to do that - if it is overpaid, the deposit should just go back to the tax payable account to balance out?0
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Chk your Balance sheet you may have a debit account called Coy Instalments paid .
if the Tax RETURN was correctly done, then yes its over paid as a result of Tax Return lodged , so this refund will be credited there.
You need too talk to your engaged Tax Agent. If you have problem call me I can guide you .
Cosmic Accounting Group
Accountants and Tax Agents 22397009
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Thanks. No accountant has ever touch this set of books. I am a bookkeeper so trying to straighten out before EOFY. Tax returns not done previous year - I am not touching those. Any help would be greatly appreciated.
There is one liability account called tax payable. No payment have gone through this account, all BAS calculated payments were being put in a prepayment account and only one for the current year. So first entry I actually have is:
$-3862 ATO refund
$1841 PAYG-I
$2021.00 Deposit into bank account.
Cheers0 -
ok, if you wish to call me on 0407068942, I am also a Tax Agent , I can help you, but I cannot give advice on open forum on these matters .
No cost for initial inquiries , if that's worrying you.
Cosmic Accounting Group
Accountants and Tax Agents 22397009
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