Error: "Business loss activity - Description of activity is required."
Guidance:
The error code CMN.ATO.IITR.300040 typically arises when there is an issue with the reporting of partnership losses in your tax return. According to the ATO guidelines, partnership losses cannot be offset against other income in your tax return. Instead, partnership losses are carried forward to offset against future partnership income.
If you are reporting a partnership loss at question 13 – label N or O, ensure that you are not using this loss to offset other types of income, such as employment or business income. The ATO systems automatically check for compliance with this rule, and if a partnership loss is incorrectly offset against other income, this error code will be triggered. Learn more here Partnership Losses
Solution:
To resolve that error, description of activity (Label D) at Business loss activity (Item P9) must be provided when a loss has been entered at either:
- distribution from partnerships
- distribution from partnerships less foreign income.
If "Business" tab is irrelavant, deactivate it, learn more here