Shareholder salary

[Fordette]

Hi

This is actually a tax question for the new online tax programme and IR4 and IR10 tax returns

I am confused with the Shareholder Details in an IR4 at key point 42 – Current account balance says enter positive for a debit balance or a negative for a credit balance.

In the IR10 the current account year-end balance Key point 58 says,  if in debit enter with a minus sign

I guess that means they cancel each other out?

So to use a simple example - in my end of year accounts, in the shareholder advances section I have funds intro of $1,500 and drawings of $500. This means my shareholder advances are $1,000 and they show up in the liabilities section of the balance sheet. Which makes them a credit.

So in the tax programme at keypoint 58 of the IR 10 I enter $1,000 (no brackets) and in Keypoint 42 I enter in brackets ($1,000)

Is that right?

[Niceday]

Hi Fordette,

Thank you for your post.

Unfortunately we cannot provide advice on what figures to enter into the keypoints in the return as we could be wrong.

In regards to your query, for keypoint 42 you need to enter the following positive for a debit balance or a negative for a credit balance and at key point 58  if in debit enter with a minus sign.

If you require assistance with what figures to enter into the return please refer to IRD for more assistance.

Kind regards,

Lisa

[Fordette]

Hi,

I thought maybe there would be someone on this board who has the required accounting knowledge to answer this. The IRD are next to useless when it comes to matters such as this.