Issue

If a tax loss has not been entered into the Load Opening Balance, and this omission has occurred over many years, how can I take up this tax loss in the current Financial Year?

Resolution

To resolve this issue, you need to:

Step 1: Add a new Income Expense Type

Step 2: Create a negative Non - deductible event 

Step 3: Edit the Tax Loss Expense Type

Step 4: Create a positive Tax Loss event

Step 5: Match business events

Step 6: Finalise Tax and update Non-deductible Expense field

Step 1: Add a new Income Expense Type

Navigate to the Business level > Settings > Fund Expense

1. Select Administration Expense as Category Type
2. Click on Add New Income Expense Type button 
3. From the pop-up screen, enter the information as below
4. Add a New Income Expense Type with the below labels

Step 2: Create a negative Non - deductible event 

Navigate to the Fund level > Transactions > Fund Expenses > Fund General Expense

1. Select "Tax Loss" from the drop-down list as the Expense Type
2. Enter a negative amount into the Gross Amount field
3. Enter all required fields 
4. Click on Submit

Step 3: Edit the Tax Loss Expense Type

Navigate to the Business level > Settings > Fund Expense

1. Click on the Tax Loss expense type
2. From the Maintain Income Expense Type screen, click on Edit
3. From the pop-up screen, tick Yes to Tax Deductible
   
   

Step 4: Create a positive Tax Loss event

Navigate to the Fund level > Transactions > Fund Expenses > Fund General Expense

1. Select "Tax Loss" from the drop-down list as the Expense Type
2. Enter a positive amount into the Gross Amount Field
3. Enter all required fields 
4. Click on Submit

Step 5: Match business events

1. Match off the positive and negative business events

Step 6: Finalise Tax and update Non-deductible Expense field

Navigate to the Fund level > Periodic Processing > Period Update

1. Select the relevant Financial year
2. Run Period update to 30 June
3. Click on Finalised Tax
4. Once done, click on View Tax Return button
5. From the Browse Tax Lodgment screen, click on Annual Return
6. Go to Section C, clear the negative amount under Non-deductible