Validation Error
This validation error occurs when, in the SMSF Annual Return, Section A - Fund Information, Question 10 “Did the fund have any other income that was assessable?”is answered No, but the fund still reports a taxable income or loss.
When this question is answered No, the taxable income must be zero, as it is calculated as total income minus all deductions. This discrepancy is identified in Section C - Expenses of the Tax Return.
How to resolve the Validation Error
You can resolve this Validation Error in one of two ways:
- Review Section B - Income and Section C - Expenses, of Tax Return to confirm that Total assessable income minus total deductions equals zero.
- Alternatively, review Section A - Fund Information and update “Did the fund have any other income that was assessable?” to Yes, then review and complete Section B - Income accordingly.