Income Tax Refund
Bit confused as to which account i allocate an INCOME TAX REFUND. Is it a credit to a liability account as Income tax payable (as its a refund) or allocated to other income and create a new acco...
Forum Discussion
Good question.
Depends on the Business Structure eg Sole Trader or Company.
A Sole Trader would post to a Income Tax Refund to Equity.
Make sure the PAYG - I Ledger is correct (if using one).
A Company would should have a Current Asset called Income Tax Refund FY23.
Some Tax Accountants leave the Current Liability Income Tax Payable as negative.
Let me know.
Duncan
