SK Mfg Investment Tax Credit Entry

When the client receives a tax credit refund cheque - what account should be credited? Do you individually credit the asset accounts (as it is based on 5% of qualified property acquired in the current year)? And/or - should it have been made in the previous year as a year end adjusting entry - similar to Corporate Tax payable?

Any previous experience in this would be appreciated.

Parents
  • 0

    If you are talking about a refund for GST then there are 2 options.

    1)The refund was booked as a receivable therefore it would go against receivable.

    2)The refund was booked as an ITC therefore it would go against the GST ITC account.

    Hope this helps!

Reply
  • 0

    If you are talking about a refund for GST then there are 2 options.

    1)The refund was booked as a receivable therefore it would go against receivable.

    2)The refund was booked as an ITC therefore it would go against the GST ITC account.

    Hope this helps!

Children