Xero Tax - Confirm the Foreign Income Tax Offset Calculation in Xero
Whilst this currently auto calculates, there is no calculation in Xero to confirm the return has the correct amount. This has to be checked manually, which can leave room for errors and requires extra work by users. It would be more efficient if the system could check this.
BDO Australia Xero HQ
shared this idea
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Johnny Jim
commented
Sometimes when I calculate and adjust the FITO figure manually via "foreign tax offset on foreign capital gains" over the estimate section of the tax return, the final taxable income page will present incorrectly.
The "foreign tax offset" is shown as $x calculated from Xero and
The "foreign tax offset on foreign capital gains " is shown as y ("correct FIFO figure amount less the difference to make on the correct FIFO figure).Some client will query on this difference and the only way to explain to the client is that the presentation was not good when the client did not receive any FIFO from the capital gains.