Write the net profit or loss in Box 20B. This is the amount of income or loss after the deduction of all allowable business expenditure, including shareholders’ salaries paid or credited.
Only include net residential rental income or losses not included at Question 19 and commercial rental income in Box 20B.
Don’t include any income already shown at Questions 12 to 16 and 19, losses from CFCs (see the notes to Question 36 at IR4 Question 36 Foreign rights) or claim donations here (see the notes to Question 25 at IR4 Question 25 Donations).
If expenses are deductible against income declared in Questions 12 to 14, claim them here.
a fully completed Financial statements summary (IR10) form, or
the company’s financial accounts.
The IR10 is a statistics form that sets out a general summary of information from the financial accounts.
If you complete an IR10 you don’t need to send the financial accounts as well. You still need to complete them (unless the company is very small) and keep them in case Inland Revenue ask for them.
Very small companies are not required to prepare financial accounts if these conditions apply during the income year. The company:
is not part of a group
has not derived income over $30,000
has not incurred expenditure over $30,000.
Companies that don’t prepare financial accounts must fill in an IR10 using information from their trial balance or financial records.
For more information about who has to prepare financial accounts and minimum financial reporting requirements, go to the Inland Revenue website at www.ird.govt.nz (search keywords: financial reporting).
Under the attribution rule, anyone whose actions cause an “associated person” (company, trust or partnership) to earn income, can be personally liable for tax on that income.
If this rule applies to persons associated to your organisation, it will affect the amount of taxable income in this return.
To find out how to apply this rule, please refer to the Tax Information Bulletin (TIB), Vol 12, No 12 (December 2000) and Vol 13, No 11 (November 2001).