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Mala14(Superuser)Superuser
11 Sept 2021

Hi,

The client is a sole trader, and the only other income is parenting payment single. (Registered for GST & PAYG W/H- has employees)

Her business made a profit last year-20 and losses this year-21.

Losses should be carried forward to later income years (also cannot apply Loss carryback offset as this is not a corporate entity).

She has ATO debts both in Income Tax Account & Integrated Client account, now on payment plans.

Tax Return pre-filled her PAYG Instalments and shows as a refund. (I understand that this represents the calculated liability regardless of the payment).

However, when the tax return is lodged, how does this work? Do we lodge the tax return with this information?

Thanks

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Bruce4Tax(Taxicorn)Taxicorn
12 Sept 2021

The client is a sole trader, and the only other income is parenting payment single. (Registered for GST & PAYG W/H- has employees)

Her business made a profit last year-20 and losses this year-21.

Losses should be carried forward to later income years (also cannot apply Loss carryback offset as this is not a corporate entity).

She has ATO debts both in Income Tax Account & Integrated Client account, now on payment plans.

Tax Return pre-filled her PAYG Instalments and shows as a refund. (I understand that this represents the calculated liability regardless of the payment).

However, when the tax return is lodged, how does this work? Do we lodge the tax return with this information?

Tax refund will be applied to balance of unpaid ITA first, then unpaid ICA.

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Most helpful reply

Bruce4Tax(Taxicorn)Taxicorn
12 Sept 2021

The client is a sole trader, and the only other income is parenting payment single. (Registered for GST & PAYG W/H- has employees)

Her business made a profit last year-20 and losses this year-21.

Losses should be carried forward to later income years (also cannot apply Loss carryback offset as this is not a corporate entity).

She has ATO debts both in Income Tax Account & Integrated Client account, now on payment plans.

Tax Return pre-filled her PAYG Instalments and shows as a refund. (I understand that this represents the calculated liability regardless of the payment).

However, when the tax return is lodged, how does this work? Do we lodge the tax return with this information?

Tax refund will be applied to balance of unpaid ITA first, then unpaid ICA.

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Mala14(Superuser)Superuser
15 Sept 2021

Sorry, to clarify, she hasnt actually paid any PAYG instalments during the year; they are all part of her ATO debts and on a payment plan. Some BASs were still outstanding @ year-end.

any liability to the sole trader in her accounts as BASs were outstanding?

Is your answer still apply?

Thanks

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