Fourth quarter true-up

You can see the FBT position on the Tax Position tab. It is split into two sections: FBT to pay and GST to pay. In quarter 4 this is where you complete the true-up.

The Q4 true-up is the last stage in completing the FBT calculation. It allows you to wash up the FBT and GST that the system calculated as part of the quarter 4 calculation for the whole year, against the quarter 1, 2 and 3 amounts that you filed throughout the year. The washed-up amounts flow through to the FBT return.

Complete the Q4 FBT true-up

Even though the correct data may be available in the system, you need to manually enter the FBT amounts that were paid for quarters 1, 2 and 3. The reason for the manual entry is to ensure the amounts are correct, as per the assessed amounts in the filed returns. You should always refer to the return that was actually filed because you may have amended data in TaxLab as part of your year-end work.

1. Click the Tax Position tab > Quarter 4 tab.
2. In the FBT true-up section, enter the amounts into the quarter 1, 2 and 3 boxes.

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.

Complete the Q4 GST true-up

While it is not permitted under current legislation, it is possible to complete a GST true-up within the system.

1. Click the Tax Position tab > Quarter 4 tab.
2. Scroll down to the GST true-up section.
3. Select the Yes option to enable the GST true-up.
4. Read the disclaimer that displays on the bottom of the page.
5. In the GST true-up section, enter the amounts into the quarter 1, 2 and 3 boxes.