Why is the Provision for Income Tax out by the Supervisory Levy?
The Supervisory Levy is not included in the Provision for Income Tax account on the Operating Statement.
In Class, the Supervisory Levy is taken up by an Income Tax Expense Payment Event. It will be deductible in the Financial Year when Income Tax to the ATO is payable or refundable.
You can take up the Supervisory Levy in a particular Financial Year using the steps below.
Navigate to the Fund level > Transactions > Fund Expense > Regulatory Fee
- Select SMSF Supervisory Levy from the drop down list for Expense Type
- Enter the Fee Date
- Enter the Gross Amount
- Click on Submit
It can also be matched to a Cash Out Transaction from a Custom Holding Account (which is setup as a Sundry Creditor, refer to our knowledge article, How do I create a Sundry Creditor/Liability account?, for further details)
Refer to Annual Return errors: summary of KB articles for a summary of knowledge article on Annual Return