Deduction for uncovered deficits

If you have uncovered loss from previous years, you may be entitled to deductions. 

Does this concern me?

This concerns everyone who has an unutilised deficit from last year's tax assessment.

Deductions which cannot give or increase a deficit:

  • Child-care deduction 
  • Special allowance 

The deficit may lapse if:

  • It originates from the cessation of business in 2005 or earlier. This is due to the ten-year deadline that applied at that time.
  • You have had debt remitted through debt settlement or insolvency proceedings
  • You have transferred a deficit to previous years in connection with the winding-up of a business.

How to enter this in your tax return

This will normally be pre-filled with the amount from last year's tax assessment, so you should check that everything is correct.

You must check it against last year's tax settlement.

Documentation requirements

You do not need to send us any documentation concerning this, but you must be able to present it upon request.