Understanding the current tax proof

Overview

The current tax proof report displays all transactions that make up the current tax asset or liability balance. It reconciles to the income tax payable or receivable reported on an entity's balance sheet at year-end. This article explains how to access the report, view its components, and add or edit adjustments.

Access the current tax proof

From the entity's tax year summary, in the navigation bar select Reports > Current Tax Proof.

The proof displays all tax transactions, by tax year, including Inland Revenue tax payments, transfers or assessments, tax pooling transactions, the current tax charge, and any manually added journal adjustments. Selecting the plus icon next to the current tax charge displays the transactions that make up that balance.

The Asset (Liability) balance at the bottom of the report is the tax balance payable or receivable at the end of the tax year.

This figure can be used to reconcile to the tax asset or liability reported in the entity's trial balance.

Add a prior period adjustment

1. From the Current Tax Proof, select New > Prior Period Adjustment. 
2. Optional: Edit the default date, tax year and journal narration.
3. Optional: Edit the default settings: Include in Tax account movements and/or Include in Current tax proof.
4. Enter the prior period adjustment as a journal. Ensure debits and credits balance.
5. Optional: Add Notes.
6. Select Save.

Add a current period adjustment

1. From the Current Tax Proof, select New > Current Period Adjustments.
2. Optional: Edit the default date, tax year and journal narration.
3. Optional: Edit the default settings: Include in Tax account movements, Include in Current tax proof and/or Is Ledger Reconciliation.
4. Enter the prior period adjustment as a journal. Ensure debits and credits balance.
5. Optional: Add Notes.
6. Select Save.

Edit or delete an adjustment

1. From the Current Tax Proof, select the adjustment you want to edit or delete. 
2. To edit the adjustment, make changes and select Save.
3. To delete the adjustment, select Delete.

Related articles

Record tax payments

Deferred tax proof

View the income tax position