How to enter a Company Income Tax Payment

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Grant_7029312
Grant_7029312 Member Posts: 4
We received a Company Income Tax Bill, how do I enter it correctly and enter payments.

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  • cosmic
    cosmic Reckon Developer Partner Posts: 1,085 ✭✭✭
    edited September 2018
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    This should be definitely guided by your tax agent, no doubt , some one will attempt to answer this for you in this forum  There is a prior income tax expense provision is created by your tax agent, which he should have given to you after he finalised your  company tax return.
    Cosmic Accounting Group
    Registered Tax Agent #22397009.

    Cosmic Accounting Group

    Accountants and Tax Agents 22397009

  • Grant_7029312
    Grant_7029312 Member Posts: 4
    edited May 2019
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    Unfortunately my experience is that accountants in my area seem to have limited knowledge with reckon accounts regarding entering transactions such as this. 

    There should be a standard procedure to enter a company Tax Debt and their payments in to Reckon Accounts. However research on this topic also appears to be limited.

    I was hoping someone could explain how they apply these entries.
  • cosmic
    cosmic Reckon Developer Partner Posts: 1,085 ✭✭✭
    edited September 2018
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     Hi, if you have difficulties with your engaged Tax Agent, please give us a call
    on0295411338, or mobile :0407068942.

    Cosmic Accounting Group

    Accountants and Tax Agents 22397009

  • Angelo Fraietta
    Angelo Fraietta Member Posts: 26
    edited August 2015
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    I have it as a transfer from 
    Tax Office Liability:Provision for Income Tax
    to
    Income Tax Expense
  • Grant_7029312
    Grant_7029312 Member Posts: 4
    edited August 2015
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    Thanks for your input AF, not sure exactly what account type your "Income Tax Expense" is. I assume it is not actually an expense account as a tax payment is not a claimable expense, and the entries should not effect the P&F. I will post what I done and I think this has the desired effect.
  • Grant_7029312
    Grant_7029312 Member Posts: 4
    edited August 2015
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    Here is the solution I currently have in place,
    1. I created a new "Other Current Liability" account called "Income Tax"
    2. I created a "General Journal Entry" to Credit the "Income Tax" account and Debit "Capital Profits Reserve" Equity Account. The amount was for the Tax Payable amount.
    3. I create an entry in the "Write Cheques" for the amount of the payment's to the "Income Tax" account. This will apply the payment to the debt.
    This did not affect the P&F and the profits are accrued in the equity account.

    Entries can also be applied to this account for any fees or interest which are a claimable expense.

    No doubt there are many ways to do this and I would like to continue see how others accomplish this, and or their feedback.