View or edit income tax return settings

Overview

Income tax return settings are editable at the income tax return level. This means you can have different settings for different tax years, for the same entity. Any settings that you select will roll forward as defaults to the next tax year. Settings can be edited at anytime, however some are best adjusted before starting the tax calculation. 

Accessing tax return settings

From the entity details screen select the three ellipses > Settings.

Settings

Profit before tax

Set profit before tax

By default, the software calculates the profit before tax using amounts in accounts and workpapers, and therefore the tax payable. To override the profit before tax calculation:

1. Enter the amount in the Profit (loss) before tax per the Financial Statements box.
2. Select 'Manually per the Financial Statements amount shown above' option.

Financial Statements group

Template

By default, the 'IRD minimum financial reporting requirements' Template option is selected. To change to IFRS, select the pencil icon. Changing the template will reset the financial statement mapping of all accounts. 

If you are importing a trial balance from Xero, use the 'IRD minimum financial reporting requirements' template.

Provision settings

Accounting for deferred tax

By default, the software accounts for deferred tax. To stop this, select the 'No', then enter the date in the Exclude processed after box.

Tax settings

Statement of Taxable Income

By default, the Statement of Taxable Income displays only the rows of data that are relevant to the entity’s income tax calculation. To view all of the rows in the statement, select 'Show all'.

Allow negative tax expense

By default this is set to 'No'. To allow tax expense to display a negative amount select 'Yes'.

Foreign tax credit restriction

By default this is set to 'On'. To prevent excess imputation credits converting to losses, select 'Off'.

Foreign tax credit forfeit

By default this is set to 'On'. To remove forfeiting of foreign tax credits select 'Off'.

Convert excess imputation credits to losses

By default this is set to 'On'. To remove restrictions on claiming foreign tax credits select 'Off'.

Return Settings

Imputation Credit Account

By default the imputation credit account is turned on for company income tax returns. To turn the ICA off, select 'No'.

Financial Statements Summary (IR10)

By default, the Financial Statements Summary IR10 is turned on. To turn the Financial Statements Summary IR10 off, select 'No'. The IR10 can also be turned off directly within the tax return forms.

Return is E-filed

By default, the E-File feature is turned off. To turn this feature on and enable the income tax return to be filed electronically with the IRD, select the 'Return is E-Filed' check box.

EOT status

By default, the EOT (extension of time) status is Y – With EOT. To change this status, select the applicable status from the list:

• L – Late provision of information
• D – Deferred policing
• R – Returns outstanding
• N – Without EOT
• Not agency linked

Editing mode

By default this is set to read-write. Setting this to read-only will mean users are unable to make changes to the income tax return. This is useful if you are about to, or have filed the income tax return.

Return filed date

When you file a return with the IRD, you can use this field to enter the date the return was filed. This field is only active when the return is marked as read-only.

Foreign Exchange

Code

When you set up a foreign exchange rate, the entity’s trial balance and tax calculation does not change. However, if the entity is a member of a consolidated accounting group, the Tax Position and the Tax Notes for that entity will be translated, when being viewed at the group level.

Select the currency from the Code drop-down list.

Rate

Enter the exchange rate