Loss carry-back should be reintroduced

The Institute of Public Accountants (IPA) has urged the Government to reintroduce the loss carry-back initiative that allows companies to clawback their tax paid when they incur revenue loss.

The initiative was introduced in 2012 but was removed a year later, and IPA chief executive, Andrew Conway, said with the repeal of the Minerals Resource Rent Tax, the loss carry-back became an instant casualty.

Conway said the initiative gave viable businesses a boost when they needed it the most through more timely tax loss relief.

Related News:

"Small businesses operating through companies generally have limited resources to cope with adverse trading conditions and may require short-term liquidity to meet day-to-day liabilities," he said.

"The provisions that were introduced struck the right balance between allowing losses and limiting exposure to government revenues by placing a quantitative cap in conjunction with a two-year carry-back period."




Related Content

Should accountants fill advice gap?

The Institute of Public Accountants (IPA) believes it is accountants who should be filling the advice gap in Australia and has developed what it descr...Read more

Accounting bodies unite over ALP’s ‘rort’ accusation

The Australian Labor Party (ALP) has failed to understand and respect the role of accountants, according to the Institute of Public Accountants (IPA)....Read more

IPA claims dodgy data underpins ALP’s tax advice changes

The Institute of Public Accountants (IPA) has ramped up its argument that the Australian Labor Party has no justification for attacking the fees charg...Read more

Comments

Add new comment