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Tax Calculation (Desktop) ​

What it is: The built-in Income Tax Computation sheet in Draftworx Desktop that calculates current tax, supports various entity types (normal, SBC, micro business, farming), and must reconcile to the tax balances on the SoCI and SoFP.

What it's for ​

A complete AFS requires the tax expense (SoCI) and tax payable/asset (SoFP) to agree with the tax calculation. Draftworx's Tax Calc sheet provides a structured computation workspace — the Status sheet will flag any differences so the compiler knows what needs to be resolved before finalising.

How to do it ​

Access the Tax Calc ​

  1. Any tax differences flagged on the Status sheet can be traced by selecting the TaxCalc hyperlink to navigate to the Tax Calc sheet.

Select the tax type ​

  1. On the Income Tax Computation, select the relevant consideration for the engagement:
    • Normal Tax — applies the standard corporate rate for the tax year automatically.
    • Small Business Tax Rates — SBC sliding scale; select which year(s) it applies to.
    • Micro Business — for engagements meeting the micro business threshold.
    • Farming Calculation — simplified farming tax.
    • Share Block Company — for companies defined under the Share Blocks Control Act.
    • Entity size for ITR14 purposes is set automatically based on turnover and assets.

Enter tax adjustments ​

  1. Enter negative amounts in the Debit Adjustments section (dark blue cells) to decrease net profit / increase net loss.
  2. Enter positive amounts in the Credit Adjustments section (dark blue cells) to increase net profit / decrease net loss.
  3. For Taxable Capital Gain or Assessed Loss, click the Calc hyperlinks to open those sub-calculations and fill in the blue input cells.

Reconcile to the AFS ​

  1. "Total per SoCI calculated" must agree to the tax expense on the SoCI.
  2. Enter payments, refunds, or other movements in the dark blue cells so "Total per SoFP" agrees to the tax balance on the SoFP.
  3. If differences remain, either adjust the Tax Calc reconciliation or post correcting journals to the Working Trial Balance.
  4. Once reconciled, the Status sheet is cleared.

Source ​

https://draftworx.helpjuice.com/desktop/draftworx-desktop-tax-calculation

Walkthrough: https://scribehow.com/viewer/Draftworx_Desktop_Tax_Calculation__DX113__tx7Rt_kRTHaOVy3fZLEJbg