Not submitting owners corp tax return and rolling forward losses

Owner corporation has no income nor has had any for a long time. There have been tax returns submitted every year at a cost by the stata manager accountant rolling forward an increasing tax loss which seems to be just the accountant fees for the tax return itself. The loss is $1200 and annual fees $300

Given the principle of mutuality etc. and no interest income nor any likely in the future..... The owners corporation decides there is no need to submit a tax return.

Q. If there is income in later years and a tax return is submitted, can the loss from a previous tax return be rolled forward - with a gap in the submission of returns?

 

No

 

This lodgement of returns and being slugged for it when there is no income seems to be the biggest rort going.

Whenever I attend the strata AGM I feel like putting the strata manager in a head lock over this rort.

bunk, I think you'll find that you have to keep lodging returns. If you got a spare hour you can ring the tax office for their opinion (just diarise everything about the call eg name of person you spoke to, time, date, reference no. etc ....you can ring them 5 times and get 5 different answers).

Oh, here's an idea......lodge the return yourself and save the body corp $300. Strata managers don't like that idea for some reason.

 

Strata tax returns are a very very simple matter and losses arent ordinary available since the income is exempt. (Mutuality principle)

A Strata is a public company and is therefore required to lodge IF IT HAS income. Otherwise if all income is under the mutuality priciples it does not. Refer to :
Strata title body corporate tax return and instructions 2018

You may need to send a simple letter to the ATO that the strata has no non-mutual income and no longer needs to lodge.