Issue

Australian resident shareholders, including SMSFs, who are issued with an exploration credit will be entitled to a refundable tax offset. This article explains how to process this on Class.

Resolution

Class does not automatically process this offset. To process this manually:

Step 1: Process accounting adjustment (Reduce Income Tax Expense)

Step 2: Manually update Annual Return form for Tax Adjustment

Step 1: Process accounting adjustment (Reduce Income Tax Expense)

Navigate to Fund Level > Periodic processing > Period updates> 20XX-20XX Financial Year

1. Click on the link Final Period Update processed on 30/6/XX on the View/Rollback
2. Click on Post Fund Income Tax Expense
3. Manually adjust the Provision for Income Tax to account for the tax offset 

Step 2: Manually update Annual Return form for Tax Adjustment

Navigate to Fund Level > Periodic processing > Browse Tax lodgments

1. Click on the financial year being processed
2. Click on Annual Return
3. Go to Section D: Income tax calculation statement > Label E4 Exploration credit tax offset
4. Enter the amount