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The issue I have is that I have a company that has received a subvention payment and has losses to carry forward. However when I enter it in the system and go to extract the return, it won't extract because the losses to be used in the return are greater than the taxable income (excluding the subvention receipt)
Does anyone have any suggestions as to how we can get the return to extract correctly.
Thanks for the question!
You will need to check the values in fields 25A and 25B. 25B cannot be greater than 25A.
Hope this helps!
Thanks for the response @Harlech1000
Check then the Total Income at field 24.
See if it is greater than or less than the value in 25A/25B
The income at 24 is less than Box 25 A/B as it does not include the subvention receipt.
The IRD's guide says that the income in Box 24 should not include any subvention payments or receipts.
If we include the subvention payment so that box 24 equals the losses to be utilized, then the summary page produces the wrong figures.
We are not able to provide tax advice - as such we would recommend speaking with the IRD about how to handle Subvention Payments when the total income is less than the payment amount.
I'm sorry I don't understand. I wasn't asking you for tax advice, I was asking why the AO Tax return software won't let us extract the return - when it should let us extract and file the return. If it doesn't or can't then it could possibly be a flaw in the software. Someone may have had a similair situation and found a work-around.
Thank you for your suggestion I will ring the IRD and explain the situation to them and ask for their advice as to how to extract and file the return given that our software won't allow it.
Any way thanks for your help and have a good weekend
I am not sure what you mean by "extract the return" ... are you referring to the process of preparing the return to submit it to the IRD?
Are you receiving validation errors in the software?
The IRD will not be able to provide you with information about how to complete the return within AO Classic.
The IRD will, however, be able to explain the use of the the Subvention payments and how to enter them on a return.
We have no reports of issues with subvention payments in the past - so without seeing why you beleive the calculations are incorrect, it is difficult to diagnose further.
As you can appreciate, MYOB are not tax agents, and therefore we are legally not permitted to tell you how to complete a return - this includes telling you whether a value entered into a field is right or wrong - we can only direct you to areas to check.
Thanks for you all your help-
AO says "extract this return for E-File Transmission to IRD"
I believe it is coming up with an error because Loss is greater than the available income - it appears that the system takes Box 24 compares with the Box 25B and as in this case income is less than the loss we are claiming in this return. So it then throws up an error. It appear to take Box 27 into account.
The IRD stipulate that BOx 24 doesn't include any subventions.
Thanks for your reply - you are indeed correct.
If Box 25B is greather than Box 24, then you will encounter the problem you are facing. Manually edit the amount in Box 25B to ensure that the correct value is entered (it should be equal to or less than box 24)