Income Tax Refund
Bit confused as to which account i allocate an INCOME TAX REFUND. Is it a credit to a liability account as Income tax payable (as its a refund) or allocated to other income and create a new acco...
Forum Discussion
Celia,
A Tax Accountant when preparing the Financial Records for Tax Purposes will journal the PAYG - I for the FY to the Income Tax Payable account. Thus the PAYG - I ledger in nil in the Financial Records at year end.
As I mentioned, for a Company there should be a Current Asset called Income Tax Refund FY23.
The Income Tax Refund from the ATO should be the same as this figure. This ledger should be nil once the Tax Refund is received and allocated within MYOB.
Duncan
