Simple Invest 360 provides you with the ability to attach tax labels to accounts processed for the current financial year prior to preparing the year-end workflow.
This allows the accounts and the respective amounts to accurately reflect the Tax Reconciliation Report and Statement of Taxable Income Report.
- The Tax Label screen will only display accounts that have a balance processed in the current financial year.
- Tax Labels cannot be changed for default Income/Expense and Equity account types. However, tax labels can be changed for custom account types.
Tax Labels only apply to Companies and Trusts, for more information on Tax Labels for Companies click here.
From the Main Toolbar, go to Compliance.
Select Period Compliance.
Select Tax Labels
The Tax Labels screen will display, listing current year accounts that have a balance processed within the financial year.
From here, users can attach the relevant Tax Label and Secondary Labels to the sub-account or normal account. Select from the drop-down list the most appropriate label corresponding to the Trust Tax Return.Togglefor Expand All to view the full list of sub-accounts.
Note: System tax labels are fixed and un-editable
A workaround to this is to create a custom account in the Chart of Accounts.
|Beneficiary – Trust, Liability and Non-current Liabilities
|Investment, Asset and Asset – Bank
Equity, Allocation, and Unallocated Accounts
Tax Labels do not apply for Equity, Allocation and Unallocated/Clearing account types.
In this case, under Tax Labels, N/A will display.
During the current financial year, Income earned had been recorded against a custom account 26900 - Income - Other Income.
The Tax Label applied is Gross payments where ABN not quoted. This enables users to select between Primary or N/A as the Secondary Tax Label, which corresponds to the Annual Tax Return as below: