For four income years, many corporate tax entities will be eligible to claim a refundable tax offset when they incur a tax loss. This optional offset is available only to corporate businesses and is recoupment of prior year income tax paid but is only available for recent income years.
The loss carry-back is available to businesses with a turnover under $5 billion. Any refundable tax offset is limited to prior-year tax paid and the balance of the franking account.
The loss carry-back tax offset has been extended by 12 months to include losses in the 2022–23 income year. The extension is now available as the legislation has been given royal assent.
As such, Wolters Kluwer CCH iKnow in-house tax experts have curated the checklist “Is your business eligible to use the loss carry-back tax offset?” for you to provide clients with a quick and simple answer to whether they are entitled to an offset under the company loss carry-back provisions.
The checklist does not go into detail regarding when the offset is payable, nor how much of prior tax payment is eligible for the offset.