Quarter 4 true-up

Overview

The quarter 4 (Q4) true-up is the final step in completing the Fringe Benefit Tax (FBT) calculation for the year. It reconciles the total FBT and GST calculated in the software with the FBT amounts actually paid to Inland Revenue (IR) in quarters 1 to 3. For reconciliation purposes, the FBT amounts paid in Quarters 1, 2, and 3 must be entered manually, even if the data in the software is otherwise accurate. The exact figures from the submitted returns should be used, as data in TaxLab may have changed during the year.

Complete the Q4 FBT true-up

1. From the FBT Return, select Tax Position from the navigation bar.
2. Select the Quarter 4 tab. The Q4 tab is divided into two sections: FBT to pay and GST to pay.
3. In the FBT to pay section, navigate to FBT true-up. 
4. Enter the amounts of FBT paid into the quarter 1, 2 and 3 boxes. The system will then calculate the final amount of FBT to be paid for Quarter 4. 

At the bottom of the FBT to pay section, the software displays a message showing how much cash tax was saved by using the attribution method instead of paying at the top rate.

Complete the Q4 GST true-up

Although current legislation does not permit GST true-ups, the system includes functionality to perform one for internal reconciliation purposes.

1. From the FBT return, select Tax Position from the navigation bar.
2. Select the Quarter 4 tab.
3. In the GST to pay section, navigate to GST true-up and select Yes. 
4. Review the disclaimer displayed at the bottom of the screen.
5. In the GST true-up section, enter the amounts for Quarters 1, 2, and 3.

What's next?

File an FBT return

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