Issue

Tax is not being calculated correctly for a non-resident SMSF.

Cause

By default, Class will calculate 15% tax for Australian SMSFs. The tax calculation for non-resident/non-compliant funds is not supported on Class.

Resolution

 To resolve this issue the following workaround can be used:

Step 1: Calculate the correct tax payable outside Class.

Step 2: Update Tax payable in Class.

Step 1: Calculate the correct tax payable outside Class.

Step 2: Update Tax payable in Class.

1. Refer to the User Guide View and Amend Income Tax Expenses
2. Finalise Tax for the Financial Year
3. Update tax in the Annual Return

Navigate to Fund level > Periodic processing > Browse tax lodgments

1. Click on the relevant tax year
2. Click on the Annual Return link
3. Go to Section D
4. Enter the offset into E3
5. Click on Save.