There may be situations where you need to amend the Provision for Income Tax and Provision for Deferred Tax for the fund. Class enables users to view the provision for income tax and deferred tax and amend the output where required.
This article discusses the process of how to do this.
Navigate to Fund Level > Periodic Processing > Period Update
- Click on the Financial Year
- Click on View/Rollback (under Period Updates)
- Click on the Post Fund Income Tax Expense link
- This will display the current year Provision for Income Tax and Provision for Deferred Tax
- Click Edit to change the amounts
- Click Save once editing is finished.
You can always use the Revert to Calculated button to undo any changes to the allocation that you have made, to revert it back to the system calculated allocation
Refer to the following article on How to update the SMSF Annual Return to reflect the amendment
The increase/decrease of provision for income tax and deferred tax will be reflected as an increase/decrease to the fund's income tax expenses. Therefore, member benefit allocations (tax) will also be changed accordingly.
- You should reduce Provision for Income Tax for tax credits are not currently supported in Class, for example tax credits from National Rental Affordability Scheme
- You should increase Provision for Income Tax for non-compliant superannuation fund, which is taxed at 45% instead of 15%
- See How to enter Exploration Credit Tax Offset in Class.