Show at label M the extra tax required on your recoupment as calculated under Subdivision 355-G of the ITAA 1997.

Click label M to open the schedule BY, refer to Research and development tax incentive (BY) .

If you have claimed the R&D tax incentive at item 21 and you have received or become entitled to receive a government recoupment (such as a government grant or reimbursement) that relates to expenditure that you have claimed a notional deduction for under the R&D tax incentive, the income tax you are liable to pay on the recoupment will be increased. This is referred to as a clawback adjustment. The amount to be shown at label M is 10% of both the following:

• The R&D expenditure and decline in value for which you claimed a notional deduction in relation to the recoupment.

• The expenditure and decline in value for which your affiliates and entities connected with you claimed a notional deduction in relation to the recoupment.

The clawback adjustment is capped so that the extra tax payable cannot exceed the amount of the grant you received.

For information about how this amount is calculated, refer to the fact sheet for clawback adjustment on the Research and development tax incentive home page.

CCH References

20-165 R&D - Activities and Entities

20-180 Clawback of recoupments and Feedstock recoveries

20-185 Applying R&D to Associates, R&D Partnerships and CRCs

MYOB Tax calculates the Gross Tax which is the sum of Tax on Taxable income at T1 plus R&D recoupment tax at label M. It is the amount of tax payable before the application of allowable offsets and credits.

Show at label C the total of actual tax offsets available - in dollars and cents - and not the amounts giving rise to those tax offsets.

Click label C to open the Non-Refundable non-carry forward tax offsets worksheet (nro) . This worksheet collects values entered at various labels in the main return.

Where there is an Excess franking credit, the excess is considered a deemed loss to be carried forward to a future year. When entered at item 8 label H, Tax will calculate the amount of the deemed loss and include it in the Prior Year loss worksheet (pyl) to be carried forward for use in a subsequent year.

CCH References

4-820 Refund of excess franking credits

15-005 Tax offset finding table

This is the result of Gross tax less Non-refundable non-carry forward tax offsets and may not be negative. If the result is negative, a zero will be shown.

A 'holding' dialog is provided at this label to collect values entered at labels in the main return, the Non-refundable carry forward R&D tax offsets from item 21 labels A and B.

The tax offsets shown at label D are not refundable. They are only offset against gross tax to reduce it to zero, if there is any gross tax to be paid after label C Non-refundable non-carry forward tax offsets has been applied to gross tax. Any excess offsets can be carried forward to the next income year (subject to the tax offset carry forward rules in Division 65 of the ITAA 1997).

Click label D to open the Non-Refundable carry forward tax offsets worksheet (ncf).

This is the result of T2 Subtotal 1 less Non-refundable carry forward tax offsets and may not be negative. If the result is negative, a zero will be shown.

The holding dialog provided at this label collects values entered at labels in the main return and other values that integrate from worksheets such as the no-TFN offset that integrates from the ito worksheet. The Franking offset and Franking credit fields referable to LICs or tax exempt entities will be populated from data entered in the Non-refundable non-carry forward tax offset at label C.

Due to the refundable tax offset rules in Division 67 of the ITAA 1997, the refundable R&D tax offset directly reduces tax payable by a company. This includes income taxes, GST, FBT and withholding taxes. Where the amount of the refundable R&D tax offset exceeds the amount of tax that the company would otherwise have had to pay, then the excess is refundable.

Click label E to open the Refundable tax offsets worksheet (rto).

This is the result of Subtotal 2 T3 less Refundable tax offsets E 

The tax offsets shown at label F are not refundable - they are only offset against gross tax to reduce it to zero, if there is any gross tax to be paid after labels C, D and E have been applied to gross tax. Any excess of FDT offset can be carried forward to the next income year.

Refer to the current year ATO Company instructions for Franking deficit tax.

Click label F to open the Franking Deficit tax offset worksheet (fdt).

ATO website

Refer to the fact sheet and its table of contents Simplified imputation: Franking deficit tax offset.

For special rules for late balancing entities refer to the fact sheet and its table of contents Simplified imputation - FDT offset for late balancers (NAT 10164).

More information on how to calculate the amount of FDT offset for life insurance companies is available on the ATO website.

CCH References

4-780 Liability to franking deficit tax

MYOB Tax calculates this amount which may not be negative.

This is for any s102AAM interest relating to a distribution received from a non-resident trust. Section 102AAM of the ITAA 1936 imposes an interest charge on certain distributions from non-resident trusts.

Click label G to open the Generic Schedule / Worksheet.

Refer to chapter 2 of the publication Foreign Income Return Form Guide.

The Tax application calculates this amount from the amounts entered at labels H1, H2, H3, H4, H5, H7 and H8. See Label H - Eligible Credits.

MYOB Tax calculates this amount which only occurs when the amount at label E Refundable tax offsets is greater than the amount at T3 Subtotal 2.

Show at label K the total of the company's PAYG instalments for the income year of the tax return, whether the instalments have been paid or not.

Click label K to open the Return Properties PAYG/Lodge tab where these details are recorded from Activity statements lodged. If there is no value on the PAYG/Lodge tab, then you must enter it so that it is available to pre-fill label K.

Include in the total instalment amount either:

• The amount(s) pre-printed at label T7 on its quarterly activity statements or at label T5 on its annual instalment activity statement, (if the company used the instalment amount/s worked out by the ATO which it did not vary), or

• The amount(s) it reported at label 5A on its activity statement(s), reduced by any credit(s) it claimed at label 5B (if the company did not use the instalment amount/s worked out by the ATO).

CCH References

27-100 Introduction to PAYG instalments

MYOB Tax Calculates this amount. The amount at label S does not take into account any interim or voluntary payments the company has made against its income tax liability for the year of this return. If the company has made such payments, take these into account in calculating the company's final payment but do not show the amounts on this tax return.

Send the company's payment to the address on the pre-identified payment advice. If the company has not received one refer to the current year ATO Company instructions.

Do NOT send the company's payment with the Company tax return.