From: David J <ja...@in...> - 2007-05-28 23:15:32
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Hello list We continue to have significant bother with cash-basis tax reports. In Australia, the existing reports are incorrect because part-payments are ignored. See example at end. Dieter seems not yet convinced that these reports are wrong, so I'm interested to know of any other places in the world that applies cash-basis tax-reporting the same as we do. Hopefully then Dieter may be interested to reconsider the problem, and seek a better solution. I believe New Zealand is the same. Can someone confirm ? Anywhere else ? Thanks David J PS. If you use Cash Basis tax reporting in Australia, you have been warned !! Example. Remember its cash basis tax reporting. On 15 February we invoiced a customer for $1,000 plus GST of $100, total $1,100. On 14 March the customer paid $550 towards the invoice. We applied the part payment correctly. At the end of March there is $550 still owing on the account. Under Australian GST rules, we collected GST of $50 from this customer during March, and we now owe that to the Tax Office. But SQL-L incorrectly reports the GST collected as zero, until the invoice has been paid in full ! (If we report zero we could get into serious trouble with our Tax Office.) The remaining $550 was received in April, and the final $50 of GST should be reported and paid to the Tax Office sometime later. But the SQL-L report for April, Cash Basis, now shows $100 of GST collected. The SQL-L report is again incorrect. Of course this issue applies to both AP and AR partly paid invoices. Reference http://www.ato.gov.au/businesses/content.asp?doc=/content/71900.htm |