Home – New Forums Money matters Forgot to declare a taxable deduction – Can I declare next FY?

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  • #984355
    Anon
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    If I find a ‘forgotten’ invoice for a business expense after I have already submitted my taxes, can I declare on the next financial year tax? The transaction was late June but I had misplaced the invoice and just found it now. Just wondering if this is allowed? I know I can do a revision, but seems much easier if I just declare on my next quarterly BAS. It’s a couple of thousand so don’t want to just forgot about it.

    #1147252
    James Millar
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    1. Yes you can claim the GST input tax credit in a subsequent period / BAS.

    2. Regarding the income tax deduction side of things – the law does not prescribe the same concession as it does for the GST element above. There are two approaches to this

    (a) Technically most correct method (ATO preference) – amend the previous financial reports and income tax return.

    (b) The low risk approach. Given the fairly minor dollar value of the deduction and given that it would not result in a “tax shortfall” in the previous year – the risk of penalty for including in the subsequent year would be very low. Generally it’s only a problem if the adjustment would create a higher tax liability in the previous “correct” year. In this case its the other way around.

    Helping build better businesses and better lives with expert financial and taxation advice. [email protected] www.360partners.com.au 03 9005 4900
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