Record tax payments

Modified on Tue, 1 Apr at 4:34 PM

Overview

The tax payments section of TaxLab allows you to add and manage all tax payments made or received. Tax payments can be populated into an entity from integration with IR or tax pools, or entered manually. Tags can be added to transactions to determine whether they impact the tax return, tax provision, and/or the imputation credit account.

Navigation

From the entity's tax year summary select Workpapers > Tax Payments.

There are three sections to the screen; the transaction detail, summary, and Tax Traders quote.

The transaction detail section

This is where all your transactions will be visible, either those recorded manually, or those obtained from integrations.

The up and down arrows let you expand and collapse groupings.
The calendar allows you to toggle between tax years, or display all years.
The settings cog enables you to export the transactions to excel, change the view, show pending and manual transactions, and lock the tax year.

Transaction groupings and views

Transactions are grouped under four categories: Inland Revenue, Tax Pooling, Intra-Group and Tax Transfers. Transactions under Inland Revenue are then grouped into five sub-categories: Tax, Credits, Interest, Penalties, and Other.

You can use the settings cog to view transactions in three different ways:

Grouped - Default
Grouped - Inland Revenue
All Transactions

The summary section

The summary section of the screen displays the tax position for the year, and how the tax payments transactions have impacted it. Transactions that have been added to the left side of the screen for that tax year will summarise in this panel, if the transactions have been marked as Tax Paid.

If you are preparing a tax reconciliation workpaper outside the software, the balance to pay for the year should reconcile to this section of the screen.

Adding transactions

When a transaction is added, either manually or through an integration, there are multiple dates that can be selected.

Effective date: The date of the transaction in myIR. This is when the transaction is treated as paid or received by myIR and is the default date used for all following dates for transactions received through the IR integration.

Processed date: The date IR processed the transaction, which determines the tax year.

Journal date: the tax year date for tax provision purposes.

ICA date: the date the transaction will impact the ICA.

Instalment date: determines the provisional tax instalment date the payment or receipt aligns to.

Tax transactions with IR

When an Inland Revenue (IR) integration is setup for your organisation, tax transactions will automatically import for your entities. TaxLab will import all income tax transactions that IR processes, including reversals which are often not visible in myIR. Therefore the volume of transactions that are displayed in tax payments may be greater than what is visible in myIR. Transactions that have been imported through the integration will display with a green dot beside them. To manually add an IR transaction:

Select New, then select Inland Revenue.
Select the Tax year.
Select the Account (Inland Revenue, or Inland Revenue - historic).
Select the appropriate dates, transaction type, and amount.
Select any additional checkboxes as needed. If you want the transaction to impact your tax return you will need to tick Applied as Tax Paid. If you want it to impact the imputation credit account select Impacts the ICA.
Optionally: add a note.
Select Save.

Tax transactions with tax pools

Transactions from tax pools such as Tax Traders or Tax Management New Zealand are automatically populated in the Tax Pooling section if you have enabled the integration. To manually add a tax pooling transaction:

Select New, then select Tax pooling.
Select the Tax year.
Select the Account (your tax pooling provider).
Select the appropriate dates, transaction type, and amount.
Select any additional checkboxes as needed. If you want the transaction to impact your tax return you will need to tick Applied as Tax Paid. If you want it to impact the imputation credit account select Impacts the ICA.
Optionally: add a note.
Select Save.

Intra-group transactions

To record the transfer of tax between entities in a group:

Select New then select Intra-Group.
Optionally edit the default tax year.
Select the entity for the transfer, transaction type, and enter the amount.
Optionally select tax provision checkboxes as needed.
Add a note explaining the transaction, then select Save.

Tax transfers within an entity

To record the transfer of income tax to different tax types, or between income years:

Select New then select Tax Transfer.
Select the tax year.
Select the transfer period.
In Transfer to account enter the entity you are working in, along with the IRD number.
Select the appropriate dates, transaction tax type, and amount.
Select any additional checkboxes as needed.
Optionally: add a note.
Select Save.

Refund transfer

To transfer income tax refunds to multiple accounts and taxpayers following Inland Revenue guidelines, refer to our article requesting income tax refund transfers.

Transaction badges

Each transaction displays 6 badges that can toggled on or off to determine whether the transaction will impact the tax return, tax provision, or imputation credit account. The options are:

Tax paid: the transaction will be recorded as tax paid or received in the tax return.

Pending: is pending confirmation.

ICA: impacts the imputation credit account

Movement: included in the Tax Provision > Tax Account Movements

Proof: included in the Tax Provision > Current Tax Proof

UOMI: impacts the use of money interest calculation