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Very quick tax interpretation question
Do I owe or do I pay?


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12 replies to this topic

#1 mpjp

Posted 22 November 2012 - 09:09 AM

I got my tax return back today from my accountant (after 3.5 months but that's another vent).....I've put in a call to my accountant to ask him but he's away and I am STRESSING. His off-sider is going to call me after 3pm. Our enture finance department is off work today and I cant think who to ask!!!

The cover letter says:

..............................Taxable income..................Tax payable/ (refundable)
2011-201.....................$x ................................($9,040)

I hope this comes out on your screen like it does mine as this is exactly what the letter looks like - but does this mean I need to PAY $9K....or does it mean I am OWED $9K.

I know it sounds silly but I had an extremely complicated tax year that year so I wasn't really sure of what my return was going to look like.

HELP please....do I need to drown my sorrows or pop the bubbles and celebrate?

TIA

Edited by meplainjanebrain, 22 November 2012 - 09:16 AM.


#2 InsertAwesomeHere

Posted 22 November 2012 - 09:12 AM

QUOTE (meplainjanebrain @ 22/11/2012, 10:09 AM) <{POST_SNAPBACK}>
I hope this comes out on your screen like it does mine as this is exactly what the letter looks like - but does this mean I need to PAY $9K....or does it mean I OWE $9K.

I think you mean owed as written like that they both mean the same thing. But it looks to me as though you are owed $9k.. Well done!

#3 mpjp

Posted 22 November 2012 - 09:15 AM

QUOTE (InsertAwesomeHere @ 22/11/2012, 10:12 AM) <{POST_SNAPBACK}>
I think you mean owed as written like that they both mean the same thing. But it looks to me as though you are owed $9k.. Well done!



Sorry yes - it's the stress!! wacko.gif If I owe i owe, but I don't want to owe!!

I meant do I PAY, or do they owe ME!! Thx!!

#4 Krunchie29

Posted 22 November 2012 - 09:15 AM

QUOTE (meplainjanebrain @ 22/11/2012, 07:09 AM) <{POST_SNAPBACK}>
The cover letter says:

..............................Taxable income..................Tax payable/ (refundable)
2011-201.....................$x ................................($9,040)


my guess is that if the word refundable is in () and your money number is in () then its a refund!

#5 gettheetoanunnery

Posted 22 November 2012 - 09:16 AM

They pay you. Nice one!

#6 mpjp

Posted 22 November 2012 - 09:18 AM

Thansk everyone - GOSH I hope you are all right - could realy use that cash at the moment!!!

#7 ~char~

Posted 22 November 2012 - 09:19 AM

Yes, the word "refundable" is in brackets () and so is the $(9,040), so sounds like a very healthy refund to me! This is the usual way that accountants advise of the payable or refundable amount.


#8 mpjp

Posted 22 November 2012 - 09:21 AM

QUOTE (~char~ @ 22/11/2012, 10:19 AM) <{POST_SNAPBACK}>
Yes, the word "refundable" is in brackets () and so is the $(9,040), so sounds like a very healthy refund to me! This is the usual way that accountants advise of the payable or refundable amount.



Thanks. I was confused as the amount appears under the 'tax payable' words. It's so much larger than I expected.... I thought I might owe a small amount, so I need to speak to him anyway. Apparently the actual return is coming today for me to look at.

THANKS everyone!

#9 protart roflcoptor

Posted 22 November 2012 - 09:22 AM

No need to guess. Tax is calculated on the amount of your Taxable Income, which will appear on the Notice of Assessment you have.

You will see an amount of tax stated as applies to your taxable income, then an amount of tax that has been remitted to the ATO during the year as PAYG withholding or PAYG instalments. If those amounts are greater than the amount of tax that should be paid on your taxable income, you will receive the excess back as a refund. If the amount of tax paid during the year is less than the amount required, you have an amount to pay to the ATO.

Have another look at the Notice of Assessment, all the info should be there.



#10 ~char~

Posted 22 November 2012 - 11:17 AM

QUOTE (ossim roflcopter @ 22/11/2012, 10:22 AM) <{POST_SNAPBACK}>
No need to guess. Tax is calculated on the amount of your Taxable Income, which will appear on the Notice of Assessment you have.

You will see an amount of tax stated as applies to your taxable income, then an amount of tax that has been remitted to the ATO during the year as PAYG withholding or PAYG instalments. If those amounts are greater than the amount of tax that should be paid on your taxable income, you will receive the excess back as a refund. If the amount of tax paid during the year is less than the amount required, you have an amount to pay to the ATO.

Have another look at the Notice of Assessment, all the info should be there.


I agree with this but the notice of assessment may not have issued yet if the return has not been lodged. It sounds like the accountant has sent out the tax return for the OP to review and sign prior to lodgement. After lodgement the Notice of assessment will be issued.

#11 Suz01

Posted 22 November 2012 - 11:32 AM

Agree, its a refund to you. That's how my old firm used to present it in their letters to clients.

#12 protart roflcoptor

Posted 22 November 2012 - 12:20 PM

QUOTE (~char~ @ 22/11/2012, 11:17 AM) <{POST_SNAPBACK}>
I agree with this but the notice of assessment may not have issued yet if the return has not been lodged. It sounds like the accountant has sent out the tax return for the OP to review and sign prior to lodgement. After lodgement the Notice of assessment will be issued.


In that case, the same information should be in the letter the accountant has sent.


#13 mpjp

Posted 22 November 2012 - 12:50 PM

QUOTE (~char~ @ 22/11/2012, 12:17 PM) <{POST_SNAPBACK}>
I agree with this but the notice of assessment may not have issued yet if the return has not been lodged. It sounds like the accountant has sent out the tax return for the OP to review and sign prior to lodgement. After lodgement the Notice of assessment will be issued.



Thats correct. They haven't been lodged, and all I've recived is a letter. Apparently the actual returns should arrive today or tomorrow so I can actually see what they have done. Hence the freak out, as there isn't much commentary with it, but in previous years I seem to remember them asking to confirm my bank account details for payment. Not this time = add to freak out!

Edited by meplainjanebrain, 22 November 2012 - 12:51 PM.





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