Nil income tax returns – non-active entities

You do not need to file nil income tax returns for non-active entities. We do not expect a return if an entity is non-active.

In myIR

You may see these return statuses in myIR.

• The Returns tab will show the return status as ‘optional’ or ‘expected’.
• The Periods tab will show a link to a return that can be filed, even if filing is not needed.

You can also check the client list report in myIR for ‘return expectation information’ in the income tax section.

Income tax information

Gateway Services

The return service in Gateway Services displays a return status. This shows if a return is received, expected to be filed, not required or optional.

If you cannot see the return status in your software, please ask your software provider.

Here are a few tax season timesavers

Please check to see if any apply to your clients.

• A non-active entity does not need to file income tax returns.
• If you submit a Non-active company declaration - IR433, only file returns up to the date the entity becomes non-active.
• Losses may be carried forward when the entity becomes active (if ownership/continuity holds – see the Non-active company reactivation - IR434 below).
• If an entity claims expenses, it may stop being non-active. We will contact you to confirm the reactivation details.
• If you do file a return (including a nil return) for a non-active period, we may need to contact you before we can process it.
• If you file a non-nil return to indicate the entity is now active, please include a Non-active company reactivation - IR434 with the return.