Great to see a wonderful community of business owners helping out each other. Just as everyone I have been working on my company tax returns lodgement. I am a newbie and seeking some advice.
While I registered my company (pty ltd) in May month this year, there were no wages paid, no income or not even bank account for FY20 (July’19 to Jun’20) as we hit a roadblock in app development. Fast forward today, I was planning to submit my tax return as all nil for FY 2020. However, it just clicked to me that during the company registration process I had mentioned $1000 as paid (cash) for ‘shares’. This is basically my (shareholder) equity in the business.
Having gone through the entire tax return documentation I am unable to find any header that talks about equity. Where does this $1K fit in the tax return? I think it is not an net income, so which heading it should be accounted under in the tax return form?
I am almost through all the tax return form (most of the entries 0) except this part where I am unable to understand where to allocate equity amonunt. I am using FAS software for lodging tax return.