The ATO has released details of its administrative treatment regarding the Government’s proposed change to allow companies to carry-back tax losses to receive a refund against taxes previously paid subject to certain conditions. The one-year loss carry-back was originally proposed to apply from 2012-13, where tax losses incurred in that year can be carried back and offset against tax paid in 2011-12. For 2013-14 and later years, tax losses can be carried back and offset against tax paid up to 2 years earlier.
For those taxpayers who are able to lodge their 2013 income tax returns (ie those taxpayers with substituted accounting periods), the ATO said they should not claim the loss carry back tax offset until the law has received Royal Assent.
It said once the law is enacted, it will issue [further] advice regarding how to claim the loss carry-back offset for those who have already lodged their 2013 income tax return.
[LTN 76, 23/4/13]