Add a Charitable gift workpaper

Overview

The Charitable gift workpaper is available for Companies (IR4), Maori authorities (IR8) and Clubs/Societies (IR9) filing. It is designed to be attached to a specific account on the trial balance and assumes that the account only has charitable gifts (donations) contained within it. 

If you are filing an IR3, please refer to our support article on our Donation Credits workpaper. 

Add a Charitable gift workpaper

1. From the TaxLab home screen, select the name of the entity.
2. From the entity details screen, select the Income tax tab > select the relevant tax year.
3. Select Workpapers > Accounts > If required, select the relevant source.
4. Locate the account required.
5. Next to the account, select Add Workpaper > Select Charitable gift.

How the Charitable gift workpaper works

The workpaper assumes that the attached account contains only charitable gifts and it applies the following logic:

• Add-back adjustment: The workpaper adds back the full amount in the charitable gift account as a permanent adjustment.
• Deductibility check: If, after all tax adjustments, the entity is still in a net income position, the workpaper allows a deduction for the charitable gifts.

You will see this amount in two places on your Tax Position. Under Permanent differences; then under the Charitable gift limitation. If the entity is in a net loss you will only see the permanent difference. 

Troubleshooting

Can I manually override the amount of deduction?

No, the charitable gift workpaper cannot be manually adjusted. It will always be 100% of the balance in the attached account.

If the account contains only part Charitable gifts a breakdown can be added to the account. 

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