Loss Carry Back Provisions

Here is an excellent article that is definitely worth reading. Let me know your thoughts.

The omnibus tax bill passed in October 2020 contained the temporary loss carry-back provisions that will allow Corporate Tax Entities only to carry back tax losses from the 2019–20, 2020–21 or 2021–22 income years to offset against tax paid in a previous income year as far back as the 2018–19 income year.

The tax refund will be limited by requiring that the amount carried back is not more than the earlier taxed profits and that the carry-back does not generate a franking account deficit.

Eligibility for the loss carry-back includes a requirement for the Corporate Tax Entity to have lodged an income tax return for the current year and each of the five years immediately preceding it. There will be provisions for entities that are not required to lodge a return for a year, such as when the entity did not exist in that year.

Looks like really useful info, eh? Just click the link here to find out more from the horse’s mouth! If you’d like to share perspectives or discuss how it relates to your business, call me on (08) 9474 5155 or email me at [email protected]