Quarter 4 true-up

Overview

The Q4 true-up is the final step in completing the Fringe Benefit Tax (FBT) calculation. This process reconciles the total FBT and GST calculated for the year with the amounts of FBT actually paid to IR in Quarters 1 to 3. The reconciled figures are then incorporated into the final FBT return.

To initiate the Q4 true-up, navigate to the FBT Tax Position screen and select the Quarter 4 tab. This page is divided into two sections: FBT to pay and GST to pay, where the true-up is completed.

How to complete the Q4 FBT true-up

Even if the system contains the correct data, manual entry of FBT amounts paid to IR in Quarters 1, 2, and 3 is required. This ensures alignment with the assessed amounts in the filed returns. The exact figures from the submitted returns must be used, as data within TaxLab may have been modified during year-end processing.

1. Select Tax Position from the Navigation menu > Select the Quarter 4 tab.
2. In the FBT true-up section, 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 of the Tax Position page, the system displays a message telling you how much cash tax you saved by using the Attribution method, as opposed to paying at the top rate. This can be useful in terms of justifying the amount of time and expense required to complete the attribution on a year to year basis.

How to 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. Select Tax Position from the navigation menu, then select the Quarter 4 tab.
2. Scroll to the GST true-up section.
3. Select Yes to enable the GST true-up.
4. Review the disclaimer displayed at the bottom of the page.
5. In the GST true-up section, enter the amounts for Quarters 1, 2, and 3.

What's next?

File an FBT return