A corporate tax computation includes an unsupported brought-forward loss: trace the history

Brought-forward tax loss support should show where the loss arose, how much has been used and what remains available for the current claim. A figure copied from last year’s working or the accounts is not sufficient explanation on its own. Ask the tax preparer to review the history and current claim conditions.

Recover the originating records

Obtain relevant tax computations, filed returns, assessments and later adjustments for the years involved. Keep trade losses separate from capital allowances, donations and accounting retained losses.

Record missing years explicitly. Do not manufacture an opening figure by subtracting a desired deduction from current taxable income.

Build a movement schedule

Show the amount arising, subsequent utilisation or adjustments and the balance carried forward by year. Reconcile the schedule with the documents actually submitted or received.

IRAS applies a shareholding test to the use of unutilised trade losses against future income. Give the preparer the relevant ownership history to assess the actual conditions. The presence of a loss schedule does not itself establish eligibility.

Example: the balance never changes

Several annual workings repeat the same brought-forward amount despite intervening claims. Trace the returns and computations to establish whether the spreadsheet missed utilisation or whether another explanation exists. Do not assume repeated use of the same number proves it was accepted.

Retain the reviewed position

Keep the reconciled movement, supporting references and accepted current-year treatment together. Leave unsupported amounts on a query list rather than promising a deduction. Any waiver or other relief question requires its own review under the current official requirements.

Related practical guidance

For the surrounding records and responsibilities, see bookkeeping basics, company records to keep, bookkeeping and accounting.

Official guidance: IRAS official guidance.

Help with your company records

For accounting, bookkeeping and related compliance support, contact Raffles Corporate Services at [email protected] or WhatsApp +65 8501 7133. Tell us which records or process need attention so we can discuss the relevant next steps.