The ATO has reminded tax practitioners that the loss carry-back tax offset was only available to be claimed by eligible companies for the 2012-13 income year. It says tax practitioners should not include amounts at any loss carry-back labels in their client’s 2013-14 company tax return. If they do, the electronic lodgment service (ELS) will stop lodgment and send the tax practitioner an error message to remove the amount from the relevant label. The ATO says it is also updating Standard Business Reporting to prevent lodgment of claims for the offset.
The ATO says it will write to practitioners if they have already claimed the loss carry-back offset for their clients. The letter will advise that the assessment for the 2013-14 income year will be amended. Further, it says that as long as payment is made by the date on the notice of amended assessment, the client will not have to pay any interest or penalties. In addition, the ATO says it will contact certain clients with late balancing substituted accounting periods to discuss their circumstances for the 2012-13 income year.
[LTN 194, 8/10/14]