Issue:
You may encounter error code CMN.ATO.CTR.428314 during tax return lodgement when the claimed foreign income tax offsets exceed the Net Foreign and Attributed Income, which breaches ATO's offset rules.
Explanation:
The Australian Taxation Office (ATO) requires that foreign income tax offsets (FITOs) claimed must not exceed the net foreign income (item 8G) and attributed foreign income (item 8R) on the tax return. The total foreign income tax offsets claimed (usually reported in item 20J or related tax offset fields) should respect this limit.
If the offset claimed is greater than the net foreign and attributed income, the system will raise this validation error.
How to Fix the Error in LodgeiT:
1. Check Amounts in Items 8G and 8R:
- Go to the relevant foreign income sections in LodgeiT.
- Confirm that the amounts entered for Net Foreign Income (item 8G) and Attributed Foreign Income (item 8R) are correct and comprehensive.
- Ensure these amounts include all relevant foreign income sources converted to Australian dollars.
2. Check the Foreign Income Tax Offsets Claimed (Must be More than 20J):
- Review the amount entered for foreign income tax offsets (typically item 20J or the designated FITO field).
- Ensure that the amount claimed does not exceed the sum of items 8G and 8R.
- If it does, reduce the tax offset amount accordingly to comply with the ATO's limit.