Loss Carry Back Change in Choice (cic) — (Amended Company returns only)

Key points

An eligible corporate entity may change a loss carry back choice for the 2020–21 and 2021–22 income year. Change in choice is effective from the day the entity made the original loss carry back choice.
The Loss Carry Back Change in Choice (cic) is available in 2021 and 2022 and only when you amend a company tax return.
If you need to make any changes to Item 13 in a tax return, then you must complete the Loss Carry Back Change in Choice (cic) schedule.
This is a lodgable schedule with the ATO.

In MYOB Tax, we've added a new worksheet called Loss Carry Back Change in Choice (cic) to change any loss carry back amounts in the previous years.

The Loss Carry Back Change in Choice (cic) worksheet will be available only on Amended Company returns

Accessing the cic schedule

You can access the cic schedule from

Preparation > Schedules within an amended return or
by answering Y at Item 13 : Have you made a change to your loss carry back choice?

The Loss Carry Back Change in Choice has the following sections:

Part A

Field name	What to enter
What is the reason for the change in loss carry back choice?	Select a reason. A = Excessive losses carried back B = Prior year tax liability change C = Tax loss increase / decrease D = Additional tax losses carried back E = Consequential amendment for prior year
Will this change result in another amendment request for years where there is a consequential impact?	Answer Y if you need to complete Part B to change the choice for another tax year. If you answer N, then you don't need to complete Part B for another tax year.
Indicate change in total amount of tax losses carried back from the original disclosure	Select Increase or Decrease.
Amount of the difference in total amount of tax losses carried back from the original disclosure	Enter amount of difference in total amount of tax losses carried back from original disclosure.

Choice year

Impact year: prefilled with the current year

Tax losses deducted

Field name	What to enter
Indicate the change in total tax losses deducted from the original disclosure	Select Increase, Decrease or No change. If you select No change, the amount fields will be disabled.
Amount of the difference	Provide details of change in tax losses deducted from the original disclosure and total amount disclosed at Item 7 Label R of the CTR for the income year of the schedule.
Adjusted Tax losses deducted amount	Provide details, if any, of change in tax losses deducted from the original disclosure and total amount disclosed at Item 7 Label R of the CTR for any consequential income years (up to four years following the change in choice year).

Taxable/Net income or loss information

Field name	What to enter
Indicate the change in total tax losses deducted from the original disclosure	Select Increase, Decrease or No change. If you select No change, the amount fields will be disabled.
Amount of the difference	Provide details, if any, of change in taxable/net income or loss from the original disclosure and total amount disclosed at Item 7 Label T of the CTR for the income year of the schedule.
Adjusted Tax losses deducted amount	Provide details, if any, of change in tax losses deducted from the original disclosure and total amount disclosed at Item 7 Label T of the CTR for any consequential income years (up to four years following the change in choice year).

Tax losses Carried forward

Field name	What to enter
Indicate the change in total tax losses deducted from the original disclosure	Select Increase, Decrease or No change. If you select No change, the amount fields will be disabled.
Amount of the difference:	Provide details, if any, of change in taxable/net income or loss from the original disclosure and total amount disclosed at Item 13 Label U of the CTR for the income year of the schedule.
Adjusted Tax losses deducted amount	Provide details, if any, of change in tax losses deducted from the original disclosure and total amount disclosed at Item 13 Label U of the CTR for any consequential income years (up to four years following the change in choice year).

Part B

Part B is the same set of fields from Part A and will be visible only when you answer Y at Will this change result in another amendment request for years where there is a consequential impact?. This section includes an additional section for other adjustments.

Other adjustments

Provide details, if any, of other adjustments to taxable income/net income or loss due to reasons other than changing an LCB choice for any consequential income years (up to four years following the change in choice year).

Field name	What to enter
Are there any other adjustments to taxable/ net income or loss due to reason other than changing a loss carry back choice?	Enter the relevant amount.
Indicate the change in other adjustment to taxable/ net income or loss due to reason other than changing a loss carry back choice?	Select Increase, Decrease or No change. If you select No change, the amount fields will be disabled.
Net amount of any adjustments to taxable/ net income or loss due to reason other than changing a loss carry back choice?	Enter the relevant amount.

Printing

You can print this schedule from Preparation > Schedule.

There is no ATO PDF copy of this schedule yet as ATO have not finalised the form yet.

MYOB INTERNAL STAFF ONLY

Example

This table shows the company return with income, loss and losses carried forward.

Income year	Income	Tax paid	Tax loss	Loss carry back	Tax offset	Loss carried forward
2020–2021	300,000	90,000
2021–2022			800,000	300,00 to 2019-20	90,000	500,000 (Tax loss - loss carry back)
2022–2023	60,000					440,000 (last year's loss - this year's income)

In this scenario, you amend the 2020–2021 tax return to increase the taxable income to 600,000.

Income year	Income	Tax paid	Tax loss	Loss carry back	Tax offset	Loss carried forward
2020–2021	600,000	180,000
2021–2022			800,000	600,00 to 2019-20	180,000	200,000 (Tax loss - loss carry back)
2022–2023	60,000					140,000 (last year's loss - this year's income)

Completing the cic worksheet for the above example.