"Previous year Unpaid Income Tax Liability to Carry Back to the Current Year"
Question: If we haven’t paid the 2019 Income Tax Liability that we want to carry back the 2021 tax losses in that year, are we not eligible for the tax offset?
Because in the franking account balance, if the Income Tax Liability is not paid, it will have NIL balance unless if the tax is paid, then, a franking account balance will equal to the value for the Income Tax Liability.
Answer: According to ATO article https://www.ato.gov.au/Business/Loss-carry-back-tax-offset/Working-out-the-tax-offset/#Frankingaccount the answer is not eligible. Because tax offset is limited to closing franking account balance. You may call ATO for detailed information if in doubts.