Hi all,
My company (registered for GST) is receiving a government grant (from an arts body to produce an artwork) in the current financial year, while the grant activities will be undertaken in the following financial year. My understanding is that, to save being taxed on the unspent amount, the grant should be treated as deferred income.
As this is my first time in this situation, I wanted to learn:
- Where or how in my company tax return I should account for the grant as deferred income;
- Once the grant is actually spent/expenses incurred next financial year, whether further declarations need to be made on that year's tax return; and
- Confirm what and how it should be handled in my quarterly BAS (I believe it's treated as an expense in G1?)
Apologies if this has been answered elsewhere. It's a case of me not knowing what I don't know, so I'm grateful for your help!
3,424 views
3,424 views1 replies
1 replies
3,424 views
1 replies