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Junior Member
Group: Forum Members
Last Login: 6/06/2007 7:56:14 PM
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The MySF reports indicate my fund has rebates almost equal to the amount of tax payable. I am confused about the presentation however and want to make sure the software is working correctly.
The P&L shows income less expenses totalling $10,000. Notional tax is $1500, with a further $400 of non-assessable income giving a profit of $8,900 shown as being available for distribution to members. The P&L shows rebates for an amount of $1450 and total tax payable of $50.
When I run a Balance Sheet, it shows the unallocated profit before tax as $10,400 i.e. net income pre tax of $10,000 plus $400 of non-assessable income. There is an income tax payable liability which seems to be last year's tax provision of $100 (not paid yet) plus the $50 for this year. There is also a negative liability of $1450 being the rebates. Overall there is a total negative liability of $1300.
Does this seem correct? To me it does but I just want to make sure. I haven't dealt with negative liabilities much before.
If the above makes no sense (since I used dummy numbers although roughly in the correct proportions) I can email the actual reports.
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This sounds correct. The Balance Sheet will show an "Unallocated profit" amount (not including tax) being total taxable income plus any non-assessable income (in your example, 10,000 + 400). The Profit and Loss will go into more detail and give you a tax calculation.
Basically rebates are made up of negative liability accounts, i.e:
2210 Imputation credit tax rebate
2220 Foreign tax rebate
2230 Other tax rebates
Then there is:
2130 Withholding tax paid and;
2135 Tax instalments paid
That are also offset against tax.
If you believe that your rebate amount is wrong, check the balance(s) of listed accounts.
Hope this helps,
MySF
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Junior Member
Group: Forum Members
Last Login: 6/06/2007 7:56:14 PM
Posts: 0,
Visits: 0
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| That was most helpful thanks. It seems all is in order.
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