Personal Tax- Period Reform: Incorrect calculation of Basis period (incorrect year end)
Article ID
personal-tax-incorrect-calculation-of-basis-period-incorrect-year-end
Article Name
Personal Tax- Period Reform: Incorrect calculation of Basis period (incorrect year end)
Created Date
19th November 2024
Product
Problem
IRIS Personal Tax- Period Reform: Incorrect calculation of Basis period
Resolution
There are instances where the Personal Tax basis period calculation is incorrect as it should be 12 months from the end of the last accounting period. Example: 2021/22 – Taxed under opening year rules 15/03/2022 – 05/04/2022 (commencement)
2022/23 – taxed under opening year rules 15/03/2022 – 14/03/2023 (12 months from commencement)
2023/24 – should be 12 months from end of last period – 15/03/2023 to 14/03/2024 – (new Basis Period Reform rules for transitional year).
However, we are aware of PT using the incorrect year end of 30/06/2023 & deducting profits taxed in previous year. Where the AP end date is between 31 March and 4 April 2024, this would be treated as 12 months.
This has been confirmed as a defect and is planned to be fixed with upcoming ‘IRIS HOTFIX’ to be out in later December 2024, exact date to be confirmed (NOTE: This is not fixed with the 24.3.2 update). We apologise for any inconvenience.
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