COM50072 - Claims / reliefs: loss and non-trading deficits carry-back: getting the ‘LOS’ posting correct (Action Guide)

The carry-back changes the CT rate from the full rate with MSCR to the small companies’ rate

Steps 1 - 5

MSCR is due before or after the carry-back and you have overwritten the computer-calculated figure

Steps 6 - 9

1.

Use Function PAST (Prepare Full Assessment)

2.

When you reach screen COT120M

• Enter ‘Y’ in response to the question ‘MSCR due before but not after c / b?'

3.

Use the [Prev Panel] button to get back to screen COT120F

4.

Check that the figures in that screen for the number of associated companies, Franked Investment Income or (FII) Foreign Income Dividend are correct. If they are not

• Amend the entries

5.

Continue to amend the assessment

6.

Use Function PAST (Prepare Full Assessment) and enter on screen COT120F the correct

• Number of associated companies

• Franked Investment Income

Or

• Foreign Income Dividend

7.

Make any other amendments due to the assessment including the loss carry-back and let the computer calculate the tax and any MSCR due

8.

If tax is charged at the small companies’ rate after the carry-back, in response to the question ‘MSCR due before but not after c / b?’

• Enter ‘Y’ in the box provided in Screen COT120M

9.

Continue to amend the assessment