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Deepika338
August 9, 2023
Question

How to record company income tax returns refund in quick books?

  • August 9, 2023
  • 2 replies
  • 0 views

How to record company income tax returns refund in quick books? As it is not an expense and income which should not show in profit and loss report? I am talking about End of Financial year returns not GST?

Someone advised me it should go to ATO clearing account but if transaction categorised to ATO clearing account how I can make it 0.

 

 

2 replies

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IntuitAika
August 9, 2023

Hi Deepika338,

 

Thanks for posting in the Community! Have you enabled Company income tax (PAYG Instalments) option on your tax settings? If yes, you can record the payment or refund by going to GST tab. When your activity statement is lodged, QuickBooks will automatically post a journal entry against the PAYG Instalment Liabilities account and the ATO Clearing account. Therefore, any payment recorded in GST tab will reflect on the ATO Clearing account. 

 

On the other hand, you can also enter the company income tax refund in QuickBooks Online via journal entry. However, it would be best to consult an accountant to ensure that you've allocated it to the correct category.

 

For more detailed information, you can also check this article: Reporting PAYG Instalments on BAS and IAS. 

 

Feel free to drop a comment below if you have any other questions, we're here to help you. 

 

D
Deepika338Author
August 9, 2023

How we can record income tax returns refund and deposit??? can you please explain step by step. I am asking about tax returns not GST or IAS.

I
IntuitAika
August 9, 2023

Thank you for your response, Deepika338. Since the information you're trying to record is not related to GST or IAS, it would suggest to consult an accountant. This is to ensure that you'll be provided with the accurate information on how to record a company income tax refund in QuickBooks Online. If you don't have an accountant, you can find one here. 

 

Message us back if you have any other questions. 

1
169351
December 23, 2023

Useless response...

    M
    maxmelb
    July 5, 2024

    Technically it is a refund of overpaid income tax, which you've paid via the company PAYG instalment, recorded under the "PAYG instalment paid" account - a current asset. The refund is techincally retrieval of part of that prepaid current asset. A journal entry to reflect that would make sense - .debit bank account, credit the PAYG instalment paid.

    In theory the refund would not be more than the balance in that account.

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