Manage Government Tax Refund

ERPNext Accounting
1

Hi everyone! What is the best way to manage Tax refund from Government (in my case IRD, New Zealand) and enter it correctly to the system?
Thanks!

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2

When you pay tax generally you account for that like so:
Debit the income tax expense account
Credit the cash account

So when you receive a refund the reverse applies:
Debit the cash account
Credit the income tax expense account

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