Chapter 4. Creating and selecting tax forms. Sage HandiTax
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Chapter 4. Creating and selecting tax forms
Using HandiTax 2016, you can attach a number of different form types to clients. You can also create global forms, which affect a number of clients, or which affect your practice as a whole.
This section contains the following:
A brief description of the various form types that are available in HandiTax 2016
Hints and tips for preparing and lodging each form
Available form types
The forms that were available in HandiTax 2016 at the time of printing are:
Form Name ATO Form
Code
HandiTax
Code
Page Ref.
Trust
Company
Partnership
Superannuation Fund
EI
EP
ET
EC
EF
SMSF
I Form
P Form
T Form
C Form
F Form
-
-
-
-
- Self Managed
Superannuation Fund
Application for Private Ruling
ER
I or EI
Self Managed
Super
Ruling na
EM EFT 61
CU CU 61
EB FBT
Note: 2016 FBT form must be prepared in HandiTax 2016. The 2016 FBT form will be available in HandiTax 2016 in late March 2016.
RR RepReq
MC SuperPr
65 Member Contribution Supplier
S Super Mem
GA
GB
68 Instalment Activity Statement
GR
GI
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Chapter 4. Creating and selecting tax forms HandiTax 2016
Form Name
Consolidated corporate groups
Family Trust Election and/or
Family Trust Revocation
Interposed Entity Election
ATO Form
Code
CP
HandiTax
Code
Correspondenc e Preferences
BN xx yy
Consolid Group
Details
Family Trust
Election
Interposed
Entity Election
Page Ref.
Paper or electronic lodgment?
Some forms (for example, the Individual form) can be lodged either electronically or by paper.
To create a paper return, select Lodge By Paper in the “Client’s Tax Form Details” window.
Tip: If you attempt to lodge a paper form via ELS, HandiTax 2016 will treat the form as having an “Edit Error”, and will display the following error message:
”There are no files available for lodgment in this group of tagged clients.”
Note that all forms can lodged via SBR, and will be updated accordingly.
Individual (Form EI and Form I)
HandiTax 2016 can prepare the Individual tax return and all associated schedules for electronic or paper lodgment. The electronic form is Form EI, and the paper form is Form I.
. For further details, see “ Attaching a tax form to a client ” on page 73.
To create the Form EI or I, you must attach the form to a specific client in the client database.
For further details, see “ Attaching a tax form to a client ” on page 73.
Tip: To create a paper form, you must clear the Lodge By ELS or Lodge By SBR setting in the "Client's Tax Form Details" window.
Application for Private Ruling (Form ER)
You can electronically request a Private Ruling using HandiTax 2016.
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HandiTax 2016 Electronic Funds Transfer (Form EM)
Electronic Funds Transfer (Form EM)
If an Individual taxpayer wants to receive their tax refund through Electronic Funds Transfer
(EFT), you must complete the EFT section on the cover of forms EI or AI. The taxpayer can nominate to receive their refund into any bank account, including their tax agent’s trust bank account.
Note: For individual taxpayers who want to receive a direct refund, you do not need to complete the Form EM. Simply complete the EFT section on the front cover of the client’s return.
Where a taxpayer wants their tax liability to be directly deducted from their bank account, you must complete a Form EM. The ATO does not allow direct debits to be requested using the
EFT section in the Forms EI, I or AI.
Refund of Excess Imputation Credits
The HandiTax 2016 Refund of Excess Imputation Credits form provides an easy method of preparing an Individual form to claim a refund of excess imputation credits. This form gives you access to only Question 11, "Dividends". All the other questions contain default information that has been inserted to remove any ATO edit errors (V errors) that would otherwise have occurred.
If this default information is not correct for the specific client, then you cannot create the
Individual tax return in this manner.
Note: You can only request a refund in the manner outlined in this section where the client is below the tax-free threshold.
Claiming a Refund of Excess Imputation Credits
1. Press F3 or, from the Client menu, click Open Clients/Tax Forms.
2. Highlight the client.
3. Highlight the client's Individual tax form. If the form doesn't exist, create it.
4. Click Tax Forms and then click Edit.
The "Client's Tax Form Details window will open.
5. Select the Dividend Refund check box and then click Save.
6. Read the "Information" window and then click OK.
7. In the "Client's Tax Form Details" window, click Close.
8. Select and complete the tax form in the usual manner. Remember: the only question that you can complete is Question 11, "Dividends".
Client Update (Form CU)
You can use the Form CU to electronically advise the ATO of the following for Income Tax and
BAS or IAS purposes:
Adding a client
Deleting a client
Change of client name
Change of client address
The client is deceased
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The client does not need to lodge any further returns
The client does not need to lodge prior years returns
Request to receive Activity Statements via ELS
Request to cease receiving Activity Statements via ELS
Change the postal address of clients who receive payment vouchers or paper Activity
Statements where the client’s Activity Statement is not received electronically.
You can prepare the Form CU either for a single client or for a batch of clients.
Preparing the Form CU for a single client
Preparing the Form CU for a batch of clients
You are able to create and attach a Form CU to all the tagged clients as a batch. You can then immediately lodge the Form CU for all the tagged clients, or you can modify forms attached to individual clients before lodging them.
To create the Form CU for a batch of clients:
1. Tag the clients to whom the Form CU is to be attached. For instructions on how to tag clients, see "Performing an action on a group of clients" in Chapter 3, "The Client and
Returns databases".
2. From the Client menu, select Batch Create Form CU.
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Figure 37: The “Batch create a form CU for all tagged clients” window
3. Complete the “Batch create a form CU for all tagged clients” window as required and then click OK.
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HandiTax 2016 Fringe Benefits Tax (Form EB)
4. On the window that appears, click OK to lodge the Form CU for all the tagged clients immediately. Click Cancel if you want to modify individual clients' attached Form CUs before lodgment.
If you click OK, the completed form CU will be displayed in the “Print Preview" window.
If you click Cancel, you can select the individual clients' forms and modify them before lodging them.
5. If you are satisfied that the form has been completed correctly, click Close to exit the "Print
Preview" window.
6. To lodge the form, follow the on-screen instructions.
Fringe Benefits Tax (Form EB)
You can create and electronically lodge Fringe Benefits Tax (FBT) returns using HandiTax
2016. As the FBT year runs from 1
HandiTax 2016. st April to 31 st March, the 2016 FBT form is available in
Note: The 2016 FBT form will be added to the HandiTax 2016 program in March 2017.
Tax Agent Request Form (Form RR)
You can request a large amount of information from the ATO by lodging a Report Request
(Form RR). The form can be used to request the following reports:
1. Solicited Reports - each time you lodge a Form RR to request a solicited report, the ATO will return the required report to you. It can take the ATO 48 hours to process your request for a solicited report. The available reports are:
Client List,
Client Statistics report;
Activity Statement Client List report;
2. Unsolicited Reports - these reports are sent automatically by the ATO at various times.
To receive an unsolicited report, you must complete a Form RR and indicate which unsolicited reports your practice requires. The available unsolicited reports are:
Due Lodgment reports, which are sent to you at times dictated by the Tax Agent
Lodgment Program.
EFT Reconciliation Statements, which are sent to you whenever the ATO have made deposits to your nominated bank account.
Activity Statement Lodgment Report, which are sent to you each month.
Activity Statement Summary Report, which are sent to you each month.
Tip: If you no longer require an unsolicited report, you must complete a Form RR to cancel your request for that report.
You can also use the Form RR to:
Notify the ATO of a change to the Agent’s primary ELS transmitter number.
This option is relevant if your practice has multiple ELS registration numbers. All unsolicited reports will be sent to your Primary Transmitter number.
Notify or update EFT specified bank account details for receiving the EFT Reconciliation
Statements.
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Retrieving your solicited or unsolicited report
When the ATO sends you a solicited or an unsolicited report, they will place it in your ‘electronic mailbox’ for retrieval.
Note: It can take the ATO up to 48 hours to process your request for a solicited report.
To retrieve a solicited or unsolicited report, you will need to connect to the ATO and download the report from your ‘electronic mailbox’.
From the Lodgment menu, click Retrieve ATO Reports.
Viewing a solicited or unsolicited report
Once you have retrieved your report from the ATO, you can view the report in the following manner:
Tip: The HandiTax 2016 Report Navigator provides an easier method of viewing reports from the ATO. For more information, refer to Chapter 8, "Lodging tax forms".
1. From the Reports menu, click ATO and then click the required report.
2. In the “Client Expressions” window, highlight #All, and then click Select.
Note: The “Client Expressions” window will not impact on the information displayed in the
ATO report.
Figure 38: The “Open” window
3. In the “Open” window, highlight the required report and then click Open.
For a discussion on the report names, see " Understanding the report names " in Chapter 4,
"Creating and Selecting tax forms".
4. HandiTax 2016 displays the ATO Report on your monitor.
5. To print the report, click Print.
6. To exit from the report, click Close.
Understanding the report names
The names of reports that you receive from the ATO will be in the following format:
RPTttnnn
Where tt is the report type, which will be one of the following:
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CL (Client List);
CS (Client Statistics)
AS (Activity Statement Client List);
DL (Due Lodgment);
AE (Acknowledgement/Error Report);
RS (EFT Reconciliation Statement);
AB (Business Activity Statement);
AI (Instalment Activity Statement);
OL (Activity Statement Lodgment Report); or
OM (Activity Statement Summary Report)
For CL, CS and AS report types, nnn is a three-digit number representing the Transmission
Number. For the remaining report types, nnn represents the Julian day of the year.
For example, a Client List report may have the name RPTCL123.
Importing the Client List information into HandiTax
After you have obtained a Client List report from the ATO, you are able to:
report on discrepancies between HandiTax 2016’s data and the Client List;
import information from the Client List into HandiTax 2016; and
tag clients where the (a) client name in HandiTax 2016 disagrees with the Client List (b) client is classified as small, medium or large (c) client is classified as exempt (d) the Client
List shows the client’s return as being lodged, unlodged, or unnecessary (e) the Client List shows that the client’s current year tax form has been demanded and (f) there is a mismatch between HandiTax 2016 and the Client List with regard to lodged status of the client’s current year tax form.
For instructions on importing from the Client List, see "Importing from the ATO Client List" in
Chapter 13, "Importing and Exporting data".
Superannuation forms
SMSF tax return (Form - MS)
Trustees of Self Managed Superannuation funds (SMSFs) have to use the SMSF annual return, which replaced the old Fund income tax and regulatory return and member contribution statements (MCS).
The SMSF form consolidates the income tax return, regulatory return and member contribution statement. Additionally, the annual $150 supervisory levy is included in the income tax calculation and on the assessment notice.
The Fund return (Form F) is still applicable to non SMSF superannuation funds. It has been extensively updated and also removes all references to SMSFs. The Members Contribution
Statement (MCS) must still be lodged for non SMSFs to report member contribution.
The MS form has the same schedules as the Fund income tax return except for Schedule 25A and Thin Capitalisation schedule which are removed.
Note: If you have the Sage Handisoft SuperFund 2016 program installed, you can export the information for the SMSF form to HandiTax 2016.
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Member Contribution Statement Supplier Details form (MCS)
The Member Contribution Supplier Details Return form MC collects details on the tax agent (the
Supplier). To prepare the Form MC, you must attach the form to the relevant Superannuation
in the client database. For further details, see “ Attaching a tax form to a client ” on page 73.
Member Contribution Statement provider/member details schedule (S)
The Member Contribution provider/member details schedule (S) contains the details of the superannuation provider, members and their contributions. It is possible to lodge multiple schedules with each MC return.
Business Activity Statement (BAS) forms
Monthly/quarterly BAS (Form GA)
The Form GA is the monthly/quarterly GST return.
Business entities with a turnover of less than $20 million may submit their BAS using the Form
GA on either a quarterly or a monthly basis. Where the turnover is $20 million or more, the ATO requires them to lodge the form on a monthly basis.
To create the Form GA, you must attach the form to a specific client in the client
in the client database. For further details, see “ Attaching a tax form to a client ” on page 73.
Annual BAS (Form GR)
The Form GR is the annual GST return, which is used to reconcile the client’s estimated GST liability against their actual GST liability for the year.
To create the Form GR, you must attach the form to a specific client in the client
in the client database. For further details, see “ Attaching a tax form to a client ” on page 73.
To complete the Form GR, you must type information relating to the taxpayer’s sales and purchases, and the actual tax debits and tax credits that relate to a financial year period (e.g. from 1 July 2016 to 30 June 2017).
The Form GR may also be lodged by businesses that become bankrupt, or go into receivership or liquidation. In this case, the period covered will be from 1 July until the time of the bankruptcy, receivership or liquidation.
Importing BAS information from HandiLedger
Where your client's financial data has been entered into HandiLedger 2016, you can import BAS information from HandiLedger 2016 into HandiTax 2016. By importing the data, you reduce the amount of typing that must be done, and the chance of typographical errors being made.
To import BAS information
To import BAS information from HandiLedger 2016 into HandiTax 2016:
1. In HandiLedger 2016, prepare the BAS.
From the HandiLedger Reports menu, click Business Activity Statement.
Complete the "BAS transfer report" window. For information on the specific fields in the window, press F1.
Click OK.
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HandiLedger 2016 will display the report.
Click Close and exit from the report.
If the report was correct and you want to finalise the BAS, in the "Attention" window click Yes.
Click Yes to the HandiLedger 2016 “Attention” window asking if you want to transfer the report to HandiTax 2016.
2. In HandiTax 2016, select the client.
HandiTax 2016 will detect the information that was transferred from HandiLedger 2016, and ask if you want to merge the information into HandiTax 2016.
3. To import the information from HandiLedger 2016, click Yes.
If you do not want to import the information, click No.
HandiTax 2016 either creates a new BAS form, or merges the HandiLedger 2016 data into an existing BAS form.
4. Select the relevant BAS form and check the contents of the form for accuracy.
Importing BAS information from Sage One
If you are using the online Sage One package to manage client’s finances, or your clients are using Sage One with you as accountant, you can import their BAS information directly from
Sage One into HandiTax 2016.
1. Ensure that you have set up access to your clients’ Sage One data via Options / Sage
One….
2. Select the client for whom the BAS information is to be imported.
3. If you have not yet done so, on the main “Clients” window, click Edit to open the “Clients
Detail” window to connect to the client’s Sage Pay company.
4. From the Tools menu, click Import BAS from Sage One.
5. If the selected client is not currently linked to a Sage One company, click Yes on the
“Attention” window to open the “Sage One Setup” window.
6. On the “Sage One BAS Import” window, select the period to be included in the BAS report.
Figure 39: The "Sage One BAS Import" window
7. Click OK to import the BAS information. An “Information” window will indicate successful import of the BAS information from Sage One.
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8. Select the client’s BAS form and check the contents for accuracy before lodging it with the
ATO..
Instalment Activity Statement (IAS) forms
IAS (Form GB)
The ATO requires you to complete the Instalment Activity Statement (IAS) Form GB for all entities with any of the following:
Income tax withheld
Income tax instalments
Deferred final company and fund instalments for 1999-2000
Fringe benefits tax instalments
The IAS Form GB should be submitted to the ATO on a monthly or quarterly basis.
Note: The entity should complete the BAS form and not the IAS form if they have Goods and
Services Tax (GST), Wine Equalisation Tax (WET), or Luxury Car Tax (LCT).
Annual IAS (Form GI)
The Annual Instalment Activity Statement (Form GI) allows Non-Individuals to lodge their
Instalment Activity Statement annually if they have elected to do so.
Generating activity statements from Activity Statement
Summary reports
You may need to create and lodge BAS and IAS forms via ELS where the ATO has already issued paper forms, often to the clients, for that period.
Previously you would have had to obtain the form’s Document Identification Number (DIN) from the client to create a BAS or IAS form. You can now use the Report Navigator to generate monthly, quarterly and annual BAS and IAS ELS forms from details in the Activity Statement
Summary Report, which the ATO produces every month. This report contains a list of all activity statements sent to you or your client via paper or ELS during that month.
Creating activity statements
1. From the Reports menu, click Report Navigator to open the Report Navigator.
2. On the “Report Navigator” window, click the Solicited/Unsolicited Reports tab.
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HandiTax 2016 Generating activity statements from Activity Statement Summary reports
Figure 40: The Report Navigator Solicited/Unsolicited Reports page
3. Select the required OM report (format RPTOMnnn, where nnn is a 3 digit number).
Tip: Under Solicited/unsolicited reports, select Activity Statement Summary Report to list only OM reports.
4. Click Process.
Note: The Process button will only be available if the selected report is an OM report.
A warning message will advise the circumstances where you can use this method to generate BAS and IAS forms.
5. Click Yes to continue.
The “Generate Activity Statements” window will open, listing the activity statement forms included in the selected OM report.
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Figure 41: The “Generate Activity Statements” window
6. Select the check boxes for the forms to be created.
7. Click Generate to create the required forms.
HandiTax 2016 will create the forms and display a summary report in the “Report Preview” window.
Figure 42: Activity Statement Summary Report
Note: HandiTax 2016 will not overwrite any existing activity statement forms for the same period that have status of ‘Ready to lodge’ or later. If an existing form has a status earlier than ‘Ready to lodge’, you will be asked if you want it to be overwritten.
Tax Agent/Intermediary Update of Correspondence
Preferences (Form CP)
In prior financial years, the ATO has allowed taxation correspondence to be sent to only one address. To relieve the burden on tax agents, the ATO is phasing in a correspondence preference system. In the first phase, tax agents are able to use the Client Preferences for
(Form CP) to advise the ATO if certain mail items are to be sent to the tax agent, or to the taxpayer.
Your correspondence preferences either can be set globally for the tax agent, or can be set for specific clients.
Prepare Form CP for the Agent’s Preferences
When you create a Form CP for the Agent’s Preferences, you are establishing global correspondence preferences, which will be used by those clients on your Activity Statement
Client List. The exception is where a Form CP is prepared for a batch of clients. A batch Form
CP will override the global preferences.
1. From the Client menu, point to Correspondence Preferences, and then click Agent
Preferences.
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HandiTax 2016 Tax Agent/Intermediary Update of Correspondence Preferences (Form CP)
Figure 43: The “Correspondence Preferences” window
In the “Correspondence Preferences” window, for each role code (for example, Activity
Statement Account), a number of correspondence types exist.
2. For each combination of Role Code and Correspondence Type, select where the ATO is to send the correspondence. Your choices are:
A, the tax agent
C, the client or
D, delete the Correspondence Profile for that item. The ATO will then send the correspondence to the taxpayer’s postal address.
Tip: Click the Agent or Client buttons to set the destination of all correspondence to either “A” or “C” taxpayer respectively. To delete the correspondence profile, click Delete
Profile.
3. To lodge the Form CP with the ATO, click Lodge.
The form will be displayed in the "Report Preview" window. If required, print a copy of the form. To continue with the lodgment, click Close and exit from the preview.
4. In the “Attention” window, click OK to lodge the form.
Prepare a Form CP for a batch of clients
When you create a Form CP for a batch of clients, the preferences that you specify will override
your global preferences (see “ Prepare Form CP for the Agent’s Preferences ” on page 70).
1. Tag the clients that the Form CP will be prepared for. For instructions on how to tag clients, see "Performing an action on a group of clients" in Chapter 3, "The Client and Returns databases".
2. From the Client menu, click Correspondence Preferences, and then click Batch Update
Client Preferences.
Complete and lodge the “Correspondence Preferences” window in the same manner as
described in “ Prepare Form CP for the Agent’s Preferences ” on page 70.
Where a global Form CP has previously been lodged, this new Form CP will override the correspondence preferences of the tagged clients.
Viewing a client’s correspondence preferences
You can view the correspondence preferences that have been set for a specific client:
1. Press F3, or from the Clients menu, click Open Clients/Tax Forms to open the “Clients and Their Tax Forms” window.
2. In the upper part of the window, highlight the required client and then click View.
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3. In the “Clients Detail” window, click Pref. The "Correspondence Preferences" window will open, displaying the preferences for that client.
Figure 44: The “Correspondence Preferences” window, displaying the preferences saved against a specific client
Tip: Where a Form CP has not been processed for a specific client, their preference will be displayed as shown in the figure. The client will use the agent’s preferences.
Viewing the Agent’s Preferences
Once the Agent’s Preferences have been lodged on a Form CP, you can view the preferences in HandiTax 2016 as follows:
1. From the Client menu, point to Correspondence Preferences, and then click Agent
Preferences.
2. The saved preferences are displayed. Click Close to exit from the window
You can also view the Agent’s Preferences by obtaining an ATO report from their secure website.
Consolidated corporate groups (Form BN)
Since 1 st July 2002, eligible wholly owned corporate groups can consolidate for tax purposes. A consolidated group consists of a head company and one or more subsidiary companies. The head company must notify the ATO of the decision to consolidate. The head company must also notify the ATO whenever changes occur to the membership of the consolidated group.
Preparing a consolidated group form
To prepare the consolidated group form:
1. Press F3 or, from the Clients menu, click Open Clients/Tax Forms.
2. Highlight the client. If the client does not exist, add the client.
3. Click TaxForms and then click New.
4. In the Form Type field, select Consolid Group details.
5. Complete the remaining information in the "Client's Tax Form Details" window as required.
6. Click Save and then click Close.
7. The consolidation group form will now be attached to the client. Complete and lodge the form as you would for any other form type.
For information on each field in the consolidated group form, please refer to the ATO's form instructions.
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Attaching a tax form to a client
When a client is created in HandiTax 2016, generally the client’s primary tax form (that is an
Individual, Partnership, Trust, Fund or Company Form) is created in the Returns database.
Sometimes you will need to attach additional tax forms to the client (such as an Amendment for
Individuals, Client Details, Ruling Request etc). The procedure for attaching a new tax form to an existing client is outlined below.
To attach a new tax form to an existing client
1. Press F3 or, from the Client menu, click Open Clients/Tax Forms to open the "Clients and their Tax Forms" window.
2. Highlight the required client.
3. The lower half of the “Clients and their Tax Forms” window displays the tax forms currently attached to the client. To attach a new form to the client:
Click TaxForms to activate the lower row of buttons.
On the lower row of buttons, click New.
Complete the “Client’s Tax Form Details” window and then click Save.
Note: If you are attaching a BAS or IAS form to the client, you may also need to complete the "Activity Statement - Selection" window. HandiTax 2016 prompts you to complete this window if necessary.
For detailed information on the "Client's Tax Form Details" and "Activity Statement -
Selection" windows, see Chapter 3, "The Client and Returns databases".
To begin typing information into the tax form immediately, click Select. Otherwise, click
Close.
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To import data from Sage Point & Claim
If your client has downloaded the Sage Point & Claim app, and selected you as their tax agent,
HandiTax 2016 will automatically access the website and download selected tax data into the client’s I form. After downloading the data, HandiTax 2016 will not access the website again for the client, unless you request it to do so.
Note: You have to enable Sage Point & Claim downloads for the client by selecting the the P &
C checkbox on the “Clients Detail” window.
1. Press F3 or, from the Client menu, click Open Clients/Tax Forms to open the "Clients and their Tax Forms" window.
2. Highlight the required client.
The lower half of the “Clients and their Tax Forms” window displays the tax forms currently attached to the client.
3. Highlight the client’s I form and click edit Edit to open the “Client’s Tax Form Details” window.
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Figure 45: The "Client's Tax Form Details" window
4. If HandiTax 2016 has already accessed to Sage Point & Claim website for client data, that date that it did so is shown in the Point & Claim field.
5. If you want HandiTax 2016 to again access the Sage Point & Claim website, click the button to open the “Sage Point & Claim Receipts Import” window.
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HandiTax 2016 Selecting a client / tax form combination
Figure 46: The "Sage Point & Claim Receipts Import" window
6. Select the required transactions to download, and, if necessary, change the amounts and relevant tax form items.
Tip: You can view an image of a scanned in receipt by highlighting the relevant transaction
(with a ‘Y’ in the Image? column) and clicking Receipt Image.
7. Click Import to import the data into the I Form.
The Point & Claim field will now display the updated date.
Selecting a client / tax form combination
The majority of tax forms in HandiTax 2016 are attached to specific clients. The exceptions are:
Client Preferences (Form CP); and
Report Request (Form RR)
Before you can prepare a tax form that is attached to a client, you must select the client / tax form combination.
To select the client / tax form combination:
1. Open the “Clients and Their Tax Forms” window. Either press F3 or, from the Client menu, click Open Clients/Tax Forms.
2. Highlight the required client using either the Find button, or the buttons.
3. When the client is highlighted, the forms associated with the client are displayed in the lower half of the window. Highlight the required form and then click Select or press the shortcut key, 'L'.
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4. The “Tax Return Outline” window will open automatically if the form is the only one attached to the client or is a primary form type (I P T C or F). If it does not, then either press F8 or, from the Edit menu, click Edit selected return.
Figure 47: The “Tax Return Outline” window for an Individual tax return
5. You must now select the required schedule (for example, 'Main form I') and then begin to enter data. For detailed instructions on how to complete a tax form, see Chapter 5,
"Preparing a tax form".
BAS/IAS sequence checking
1. If you select a BAS or an IAS form that Period Start and Period End date that does not coincide with the Sequence number, HandiTax 2016 will ask if you want the Sequence number changed.
2. Click Yes to change the sequence to reflect the period start and end dates.
Amended tax returns
The ATO accepts electronic amendments for the following tax returns:
Individual (I)
Partnership (P)
Trust (T)
Company (C)
Fund (F)
Self Managed Super
Note 1: Do not use an amendment if the only alteration is EFT data – the ATO prefers you to use Form EM (Electronic Funds Transfer).
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Note 2: Existing schedules that accompanied the client's previously lodged tax return cannot be deleted. Instead, you are only able to edit the schedule(s). Where you want to delete a schedule, simply change the values in the schedule to zero.
Note 3: New schedules may be added. For all amendments an amendment schedule must be completed.
Creating an Amendment
You can prepare an Amendment for a client by creating a form of the same type and lodging it.
The amended form will be identified by its sequence number.
The client's previously lodged tax form must exist in HandiTax 2016, and
The previously lodged tax form must be marked as having been lodged.
Tip: To mark a form as lodged, in the “Client’s Tax Form Details” window, the form must have a Batch number, Status of “Lodged” and a Lodged date.
Where your practice lodged the previous return
If your practice lodged the previous tax form for the client, to prepare an amendment:
1. Press F3 or, from the Client menu, click Open Clients/Tax Forms.
2. Highlight the client.
3. Click TaxForms and then click New.
4. On the "Client's Tax Form Details" window, select the Form Type of the form to be amended. The amended form will be uniquely identified by its sequence number shown in the Seq column.
Figure 48: Amendment identified by sequence number
Amendment identified by sequence number
5. Complete and lodge the tax return as normal.
Note: For all amendment form types, you are required to complete an amendment schedule.
Figure 49: Amendment return outline
Note: Do not use an amendment if the only alteration is EFT data – the ATO prefers you to use
Form EM (Electronic Funds Transfer).
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Chapter 4. Creating and selecting tax forms HandiTax 2016
Where the previous return was lodged by a different practice
If your practice did not lodge the previous return for the client, the original form and/or previous amendment will not exist in HandiTax 2016. Before you can prepare an amendment, you must enter the previously lodged tax return into HandiTax 2016, and mark that tax return as having been lodged. The procedure is listed below.
1.
Enter the previously lodged Individual form (or previously lodged Amendment) into
HandiTax 2016.
2. Change the status of the return that you entered in Step 1 to indicate that the tax form has been lodged:
Press F3 or, from the Client menu, click Open Clients/Tax Forms.
Highlight the client and the lodged tax form.
Click Tax Forms and then click Edit.
Change the Status to Lodged and then click OK.
3. Create the amendment form:
Press F3 or, from the Client menu, click Open Clients/Tax Forms.
Highlight the client.
Click TaxForms and then click New.
Select the form type of the return being amended.
4. Complete and lodge the tax return as you would any other form type. Ensure that you complete an amendment schedule.
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HandiTax 2016 Amended tax returns
The "Corrupted Quarantine File" error
Sometimes you will experience the "Corrupted Quarantine File" error message in relation to an
Amendment return. This error relates to the data that would be transmitted to the ATO. The error does not indicate problems on your hard disk drive.
You can easily fix the "Corrupted Quarantine File" error.
Fixing the "Corrupted Quarantine File" error
Note: You must complete the following instructions on the original Individual form.
1. Press F3 or, from the Client menu, click Open Clients/Tax Forms to open the "Clients and their Tax Forms" window.
2. Highlight the relevant client and the client's Individual tax form, and then click Select.
3. Check to see if the Individual tax form has any errors:
If you are not in the "Tax Return Outline" window, press F8 to open the window.
In the "Tax Return Outline" window, click Errors.
Resolve all errors in the Individual tax form before you continue with the remaining instructions.
When the Individual tax form is error-free, exit back to the HandiTax 2016 main menu.
4. Press F3 or, from the Client menu, click Open Clients/Tax Forms.
5. Highlight the relevant client, and highlight the client's Individual tax form.
6. Click TaxForms and then click Edit.
The "Client's Tax Form Details" window will open.
7. In the "Client's Tax Form Details" window, change the Status of the tax form as follows:
(See "The Client's Tax Form Details window" in Chapter 3, "The Client and Returns
Databases").
Set the Status to Ready to Lodge.
Clear the Transmitted check box.
If there is a Batch number, write it down and then delete it.
If there is a Lodged date, write down the date and then delete it.
If there is a Notice Received date, write down the date and then delete it.
Click Save.
8. Now you must re-enter the information that you deleted and/or changed in the above step.
In the "Client's Tax Form Details" window:
Set the Status to the tax form's original status (e.g. Assessed).
Select the Transmitted check box.
Type in the Batch number (if any).
Type in the Lodged date.
Type in the Notice Received date (if any).
Click Save and then click Close.
The "Corrupted Quarantine Error" message will now be resolved.
9. Open the Amendment form and check for errors.
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