Tax & Accounting Q&As

Can I apply the loss carry back rules in a 2013 tax return?

1 min read

19/08/14 10:28

I have a company client who had a taxable profit in 2012. In 2013, the originally lodged tax return also showed a taxable profit. An amendment is now required to the 2013 tax return which results in a taxable loss. Given the recent changes to repeal the loss carry back offset, I’d like to confirm if we can still apply the loss carry back offset in respect of the amended 2013 tax return?

Answer

Even though the Government plans to repeal the loss carry back rules from the start of the 2014 income year, your client should still be able to apply the rules in relation to the 2013 tax year. If your client’s 2013 tax return is within the amendment period time limits then it should be possible to utilise the loss carry back tax offset in the amended 2013 tax return (assuming all the basic conditions for accessing the loss carry back rules are satisfied).

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