The document discusses IFRIC 23, which provides guidance on accounting for uncertainties related to income tax treatments under IAS 12. IFRIC 23 clarifies how to apply the recognition and measurement requirements in IAS 12 when there is uncertainty over income tax treatments. It provides guidance on assessing uncertain tax treatments separately or together, examination by tax authorities, and methods for reflecting uncertainty, including using the most likely amount or expected value. IFRIC 23 is effective for annual periods beginning on or after January 1, 2019, with early adoption permitted.
This document discusses business valuation and provides an overview of the valuation process. It begins by explaining that business valuation involves giving an opinion on the value of a business's ownership interest based on the assets and liabilities. The valuation process involves analyzing internal company information, industry and economic factors, and using the asset, income, and market approaches to valuation. It then provides more details on each valuation approach and the steps involved before reconciling the different values into a final conclusion. The document also provides considerations for different types of businesses, like manufacturing, and ways for business owners to maximize their value.
This document outlines an audit programme for a tax audit. It lists the objectives of the audit as assisting the income tax department to assess the correct income of the assessee and ensure compliance with tax law. It provides a checklist of permanent files and relevant documents to verify, including books of accounts, reserves, income/expenses, depreciation details, capital/personal expenditures, penalties, payments to residents/non-residents, and other disallowed amounts. The verification aims to compare accounts to prior years and ensure expenses are allowable under tax law.
This document provides an overview of international taxation concepts. It discusses how residency is a key factor in determining tax jurisdiction, as countries either tax worldwide income for residents or only income from domestic sources for non-residents. There can be conflicts when countries define residency differently, such as based on place of incorporation versus management and control, which can lead to double taxation. Treaties aim to resolve such conflicts but different countries take different approaches in their treaties. The concepts of residency, jurisdiction, and relief from double taxation are important aspects of international tax.
This document discusses accounting for taxes on income under Accounting Standard 22. It defines permanent differences and timing differences that cause differences between accounting income and taxable income. Timing differences arise in one period but reverse in subsequent periods, distorting period results. AS 22 requires adoption of deferred tax accounting to account for the tax effects of timing differences. It provides guidelines on recognition, measurement, and disclosure of current and deferred tax assets and liabilities.
This document provides an overview of the tax deducted at source (TDS) provisions under the Goods and Services Tax (GST) law in India. It discusses who is liable to deduct TDS, the registration requirements, rates and thresholds for TDS, payment and return filing procedures, certificates to be issued, refunds, and comparisons with the previous TDS system under state VAT laws. The key aspects covered are registration under GST for TDS, the 1-2% rates for deduction, monthly payment and return filing timelines, and certificates to be provided to deductees.
The amortization schedule shows the recovery of the lessor's investment in the leased asset over the lease term through both the lease payments and interest revenue.
LO 5 Describe the lessor’s accounting for direct-financing leases.
31
Accounting by the Lessor
Direct-Financing Method (Lessor)
Journal Entries:
1/1/07 Asset (cost) 245,000
Receivable from lessee 245,000
1/1/07 Cash 46,000
Interest revenue 19,900
Receivable from lessee 26,100
No manufacturer's profit or loss is recognized.
Interest method provides a constant periodic rate of
This document discusses business valuation and provides an overview of the valuation process. It begins by explaining that business valuation involves giving an opinion on the value of a business's ownership interest based on the assets and liabilities. The valuation process involves analyzing internal company information, industry and economic factors, and using the asset, income, and market approaches to valuation. It then provides more details on each valuation approach and the steps involved before reconciling the different values into a final conclusion. The document also provides considerations for different types of businesses, like manufacturing, and ways for business owners to maximize their value.
This document outlines an audit programme for a tax audit. It lists the objectives of the audit as assisting the income tax department to assess the correct income of the assessee and ensure compliance with tax law. It provides a checklist of permanent files and relevant documents to verify, including books of accounts, reserves, income/expenses, depreciation details, capital/personal expenditures, penalties, payments to residents/non-residents, and other disallowed amounts. The verification aims to compare accounts to prior years and ensure expenses are allowable under tax law.
This document provides an overview of international taxation concepts. It discusses how residency is a key factor in determining tax jurisdiction, as countries either tax worldwide income for residents or only income from domestic sources for non-residents. There can be conflicts when countries define residency differently, such as based on place of incorporation versus management and control, which can lead to double taxation. Treaties aim to resolve such conflicts but different countries take different approaches in their treaties. The concepts of residency, jurisdiction, and relief from double taxation are important aspects of international tax.
This document discusses accounting for taxes on income under Accounting Standard 22. It defines permanent differences and timing differences that cause differences between accounting income and taxable income. Timing differences arise in one period but reverse in subsequent periods, distorting period results. AS 22 requires adoption of deferred tax accounting to account for the tax effects of timing differences. It provides guidelines on recognition, measurement, and disclosure of current and deferred tax assets and liabilities.
This document provides an overview of the tax deducted at source (TDS) provisions under the Goods and Services Tax (GST) law in India. It discusses who is liable to deduct TDS, the registration requirements, rates and thresholds for TDS, payment and return filing procedures, certificates to be issued, refunds, and comparisons with the previous TDS system under state VAT laws. The key aspects covered are registration under GST for TDS, the 1-2% rates for deduction, monthly payment and return filing timelines, and certificates to be provided to deductees.
The amortization schedule shows the recovery of the lessor's investment in the leased asset over the lease term through both the lease payments and interest revenue.
LO 5 Describe the lessor’s accounting for direct-financing leases.
31
Accounting by the Lessor
Direct-Financing Method (Lessor)
Journal Entries:
1/1/07 Asset (cost) 245,000
Receivable from lessee 245,000
1/1/07 Cash 46,000
Interest revenue 19,900
Receivable from lessee 26,100
No manufacturer's profit or loss is recognized.
Interest method provides a constant periodic rate of
Presentation on TCS under section 206C (1H ) Taxmann
In this Presentation 헗헿. 헩헶헻헼헱 헞. 헦헶헻헴헵헮헻헶헮 has shared an Overview on "TCS under section 206C (1H)"
Topics Covered in this Presentation :
1. Who is liable to collect tax at the source?
A. “Seller” is required to collect tax at the source.
2. From whom tax is to be collected
A. Tax is required to be collected from buyers of goods.
3. Time of tax collection at source
4. Rate of TCS
5. When TCS is not required
6. Lower/nil TCS certificate
7. A few clarifications
8. Case-studies
This document provides an overview of accounting for income taxes under IAS 12. It discusses the key concepts of current tax and deferred tax. Current tax is the amount of income taxes payable for the current period based on taxable profit. Deferred tax arises from temporary differences between the carrying amount of assets and liabilities in the statement of financial position and their tax bases. The document explains recognition and measurement of current and deferred tax, and provides examples of common temporary differences that give rise to deferred tax assets and liabilities, such as provisions, property, plant and equipment, and fair valuation adjustments.
The document provides an overview of VAT (value added tax) that is expected to be implemented in GCC (Gulf Cooperation Council) states. It discusses that VAT is an indirect tax on consumption applied to most goods and services. It also notes that VAT will be levied on business transactions at each stage of production and distribution and ultimately paid by the end consumer. The document summarizes preparation steps businesses should take for VAT implementation including understanding the impact, identifying a strategy and timeline, and assessing system capabilities.
Presentation on updates of VAT in UAE is in line with the various advisories issued by Ministry of Finance along with the expert views. VAT is being implemented in the UAE wef 1st January 2018. Presentation has impact of VAT/ Steps to follow to become VAT compliant/ thresholds for VAT registration with process to be followed.
Equalisation Levy - Newly introduced - scope and nuances finalTilak Agarwal
A webinar on Scope and Nuances of newly introduced Equalisation Levy was presented to the members of Bangalore branch of ICAI. This presentation summarizes some of the relevant considerations and case studies along with issues unresolved on new EQ Levy on e-commerce business. Also covers the Interplay between EQ Levy and TDS u/s 194-O
Accounting Standard 25 outlines the requirements for interim financial reporting in India. It prescribes that interim reports include a condensed balance sheet, condensed statement of profit and loss, and condensed cash flow statement. The standard also describes that interim reports should apply the same recognition and measurement principles as annual financial reports and include any significant changes to estimates from prior interim periods.
Objectives & Agenda :
To understand the rationale behind Transfer Pricing and the need for documentation. To know the contents of Transfer Pricing Report in detail and appendix to Transfer Pricing Report. The webinar would cover a detailed process for preparation of Transfer Pricing Report.
1) Ghana signed tax treaties with Switzerland and the Netherlands in 2008 that reduced the royalty and technical service fee taxes Ghana could collect on payments flowing out of the country from 15% to 8%, resulting in increased tax losses.
2) Tax treaties are not always necessary to prevent double taxation and empirical studies do not find they increase investment, while they always result in developing countries giving up some taxing rights to developed countries.
3) Developing country tax officials are often not well trained in international taxation and tax treaties, leading to weaker negotiating positions and treaties that more strongly reflect the positions of developed country partners.
Tax treaties are agreements between countries to reduce double taxation on income. They define which taxes are covered, who is a resident of each country, and circumstances for taxing income of residents in the other country. Tax treaties aim to reduce taxes of residents in one country for income from the other country to alleviate double taxation. They provide exemptions and limit taxation to income from permanent establishments in the other country. Bilateral treaties are between two countries while multilateral treaties involve more than two.
This presentation discusses US taxation. It covers various taxing entities in the US, types of taxes including income, estate, gift and sales taxes. It discusses how income is taxed for individuals and corporations. It also covers topics like FBAR reporting for foreign accounts, social security taxes, the home sale exclusion, deferred compensation rules, and standard US tax forms. The presentation is intended for discussion purposes only and does not replace personalized tax advice.
IAS 12 provides guidance on accounting for income taxes. It aims to ensure that entities account for deferred tax liabilities and assets for temporary differences between the carrying amount of assets and liabilities and their tax bases. Key aspects covered include defining temporary differences, recognizing deferred tax assets and liabilities, offsetting current tax assets and liabilities, and presenting current and deferred taxes. Entities must also disclose information related to income taxes in their financial statements.
The UAE will introduce a federal corporate tax on business profits starting June 1, 2023. The tax will be 0% for taxable income up to AED 375,000 and 9% for income above that threshold. Large multinationals may face different rates. The tax applies to corporate profits but not personal income or salaries. Free zone incentives will continue for compliant businesses not operating in the mainland. The new law aims to increase government revenues while continuing to support small businesses and foreign investment.
From the current financial year 2020-21, Individuals & HUFs are having an option to select between old tax system & New Tax system to discharge their tax obligations. CBDT has recently issued a circular clarifying that employees need to intimate their respective employers regarding their choice and accordingly employer shall compute TDS. However in the absence of intimation, employer shall proceed according to existing tax system. Our tax team has explained the nuances of old and new tax system alongwith detailed comparison making the selection easy.
TDS is required to be deducted from payments made to resident contractors or sub-contractors under section 194C of the Income Tax Act if the aggregate amount exceeds Rs. 75,000 in a financial year. TDS of 1% or 2% depending on the recipient must be deducted unless the PAN is not quoted, in which case the rate is 20%. The deducted TDS must be deposited with the government within 7 days of the end of the month in which the deduction was made.
TDS, TCS, and advance payment of tax refer to India's tax collection methods where:
1) TDS requires deductors to withhold a percentage of certain payments like salaries and interest and deposit it with the government. It helps collect taxes in advance and expand the tax net.
2) TCS requires sellers to collect tax from buyers when receiving payment for specified goods.
3) Advance tax must be paid in installments by those with tax liability over Rs. 10,000, before the end of the fiscal year based on estimated income.
This document provides guidance to IRS field examiners on implications of FIN 48, which requires companies to disclose uncertain tax positions that could significantly impact their financial statements. It may result in taxpayers trying to limit audits or get early resolution of issues to reduce contingent tax liabilities. The summary discusses guidelines for examiners, including that FIN 48 disclosures provide some insight for audits but are not a "roadmap"; restricted consents and closing agreements require careful consideration; and the IRS can help taxpayers gain earlier certainty through cooperative programs.
The document summarizes some key changes introduced by Romania's new Tax Procedure Code:
1) It establishes the principle of in dubio contra fiscum, requiring tax authorities to interpret ambiguous tax rules in favor of taxpayers, though in practice this may offer limited protection.
2) It clarifies rules around resuming tax inspections, allowing inspections to continue even if the statute of limitations has expired.
3) It introduces a new non-declaration penalty that is controversial and may effectively increase penalties on taxpayers who disagree with tax authorities' interpretations in good faith.
Presentation on TCS under section 206C (1H ) Taxmann
In this Presentation 헗헿. 헩헶헻헼헱 헞. 헦헶헻헴헵헮헻헶헮 has shared an Overview on "TCS under section 206C (1H)"
Topics Covered in this Presentation :
1. Who is liable to collect tax at the source?
A. “Seller” is required to collect tax at the source.
2. From whom tax is to be collected
A. Tax is required to be collected from buyers of goods.
3. Time of tax collection at source
4. Rate of TCS
5. When TCS is not required
6. Lower/nil TCS certificate
7. A few clarifications
8. Case-studies
This document provides an overview of accounting for income taxes under IAS 12. It discusses the key concepts of current tax and deferred tax. Current tax is the amount of income taxes payable for the current period based on taxable profit. Deferred tax arises from temporary differences between the carrying amount of assets and liabilities in the statement of financial position and their tax bases. The document explains recognition and measurement of current and deferred tax, and provides examples of common temporary differences that give rise to deferred tax assets and liabilities, such as provisions, property, plant and equipment, and fair valuation adjustments.
The document provides an overview of VAT (value added tax) that is expected to be implemented in GCC (Gulf Cooperation Council) states. It discusses that VAT is an indirect tax on consumption applied to most goods and services. It also notes that VAT will be levied on business transactions at each stage of production and distribution and ultimately paid by the end consumer. The document summarizes preparation steps businesses should take for VAT implementation including understanding the impact, identifying a strategy and timeline, and assessing system capabilities.
Presentation on updates of VAT in UAE is in line with the various advisories issued by Ministry of Finance along with the expert views. VAT is being implemented in the UAE wef 1st January 2018. Presentation has impact of VAT/ Steps to follow to become VAT compliant/ thresholds for VAT registration with process to be followed.
Equalisation Levy - Newly introduced - scope and nuances finalTilak Agarwal
A webinar on Scope and Nuances of newly introduced Equalisation Levy was presented to the members of Bangalore branch of ICAI. This presentation summarizes some of the relevant considerations and case studies along with issues unresolved on new EQ Levy on e-commerce business. Also covers the Interplay between EQ Levy and TDS u/s 194-O
Accounting Standard 25 outlines the requirements for interim financial reporting in India. It prescribes that interim reports include a condensed balance sheet, condensed statement of profit and loss, and condensed cash flow statement. The standard also describes that interim reports should apply the same recognition and measurement principles as annual financial reports and include any significant changes to estimates from prior interim periods.
Objectives & Agenda :
To understand the rationale behind Transfer Pricing and the need for documentation. To know the contents of Transfer Pricing Report in detail and appendix to Transfer Pricing Report. The webinar would cover a detailed process for preparation of Transfer Pricing Report.
1) Ghana signed tax treaties with Switzerland and the Netherlands in 2008 that reduced the royalty and technical service fee taxes Ghana could collect on payments flowing out of the country from 15% to 8%, resulting in increased tax losses.
2) Tax treaties are not always necessary to prevent double taxation and empirical studies do not find they increase investment, while they always result in developing countries giving up some taxing rights to developed countries.
3) Developing country tax officials are often not well trained in international taxation and tax treaties, leading to weaker negotiating positions and treaties that more strongly reflect the positions of developed country partners.
Tax treaties are agreements between countries to reduce double taxation on income. They define which taxes are covered, who is a resident of each country, and circumstances for taxing income of residents in the other country. Tax treaties aim to reduce taxes of residents in one country for income from the other country to alleviate double taxation. They provide exemptions and limit taxation to income from permanent establishments in the other country. Bilateral treaties are between two countries while multilateral treaties involve more than two.
This presentation discusses US taxation. It covers various taxing entities in the US, types of taxes including income, estate, gift and sales taxes. It discusses how income is taxed for individuals and corporations. It also covers topics like FBAR reporting for foreign accounts, social security taxes, the home sale exclusion, deferred compensation rules, and standard US tax forms. The presentation is intended for discussion purposes only and does not replace personalized tax advice.
IAS 12 provides guidance on accounting for income taxes. It aims to ensure that entities account for deferred tax liabilities and assets for temporary differences between the carrying amount of assets and liabilities and their tax bases. Key aspects covered include defining temporary differences, recognizing deferred tax assets and liabilities, offsetting current tax assets and liabilities, and presenting current and deferred taxes. Entities must also disclose information related to income taxes in their financial statements.
The UAE will introduce a federal corporate tax on business profits starting June 1, 2023. The tax will be 0% for taxable income up to AED 375,000 and 9% for income above that threshold. Large multinationals may face different rates. The tax applies to corporate profits but not personal income or salaries. Free zone incentives will continue for compliant businesses not operating in the mainland. The new law aims to increase government revenues while continuing to support small businesses and foreign investment.
From the current financial year 2020-21, Individuals & HUFs are having an option to select between old tax system & New Tax system to discharge their tax obligations. CBDT has recently issued a circular clarifying that employees need to intimate their respective employers regarding their choice and accordingly employer shall compute TDS. However in the absence of intimation, employer shall proceed according to existing tax system. Our tax team has explained the nuances of old and new tax system alongwith detailed comparison making the selection easy.
TDS is required to be deducted from payments made to resident contractors or sub-contractors under section 194C of the Income Tax Act if the aggregate amount exceeds Rs. 75,000 in a financial year. TDS of 1% or 2% depending on the recipient must be deducted unless the PAN is not quoted, in which case the rate is 20%. The deducted TDS must be deposited with the government within 7 days of the end of the month in which the deduction was made.
TDS, TCS, and advance payment of tax refer to India's tax collection methods where:
1) TDS requires deductors to withhold a percentage of certain payments like salaries and interest and deposit it with the government. It helps collect taxes in advance and expand the tax net.
2) TCS requires sellers to collect tax from buyers when receiving payment for specified goods.
3) Advance tax must be paid in installments by those with tax liability over Rs. 10,000, before the end of the fiscal year based on estimated income.
This document provides guidance to IRS field examiners on implications of FIN 48, which requires companies to disclose uncertain tax positions that could significantly impact their financial statements. It may result in taxpayers trying to limit audits or get early resolution of issues to reduce contingent tax liabilities. The summary discusses guidelines for examiners, including that FIN 48 disclosures provide some insight for audits but are not a "roadmap"; restricted consents and closing agreements require careful consideration; and the IRS can help taxpayers gain earlier certainty through cooperative programs.
The document summarizes some key changes introduced by Romania's new Tax Procedure Code:
1) It establishes the principle of in dubio contra fiscum, requiring tax authorities to interpret ambiguous tax rules in favor of taxpayers, though in practice this may offer limited protection.
2) It clarifies rules around resuming tax inspections, allowing inspections to continue even if the statute of limitations has expired.
3) It introduces a new non-declaration penalty that is controversial and may effectively increase penalties on taxpayers who disagree with tax authorities' interpretations in good faith.
IND AS 12 provides guidance on accounting for income taxes based on a balance sheet approach, recognizing deferred tax assets and liabilities for temporary differences between the carrying amounts of assets and liabilities and their tax bases. Deferred tax assets are recognized when it is probable that taxable profit will be available against which deductible temporary differences can be utilized. Current and deferred tax are recognized as income or expense in profit or loss, except for taxes related to transactions in other comprehensive income or equity.
Lawyer in Vietnam Dr. Oliver Massmann UNNECESSARY TAX AND CUSTOMS RELATED BUR...Dr. Oliver Massmann
The document discusses several issues faced by investors in Vietnam related to unnecessary tax and customs burdens imposed by state authorities. Some of the key issues mentioned include retrospective collection of taxes despite tax incentives provided, inconsistencies in applying HS codes for imported goods which results in higher tax rates and penalties, misinterpretation of guidance on tax declarations leading to wrongful penalties, and rejection of VAT refunds due to administrative errors. The document calls for Vietnamese state authorities to implement policies consistently and protect lawful rights and interests of enterprises to support the country's socioeconomic development goals.
This document provides guidance on accounting for uncertain tax positions under a new IFRS Interpretation. The Interpretation establishes a two-step process for recognizing and measuring uncertain tax positions: 1) Determine if it is probable the tax authority will accept the position, and if not, recognize an additional liability. 2) Determine if the most likely outcome or expected value method better predicts resolution and apply accordingly. It will be effective for annual periods beginning on or after January 1, 2019, with early adoption permitted. Transition allows either retrospective application under IAS 8 or recognition of the cumulative effect on the date of initial application.
IAS 12 provides guidance on accounting for deferred taxes. A deferred tax liability arises when tax depreciation is higher than book depreciation, resulting in lower current tax expense. A deferred tax asset occurs when tax depreciation is lower than book depreciation, resulting in higher current tax expense. These differences are temporary and will offset over time. The deferred tax amounts are recorded to allocate the tax expense or benefit to the appropriate accounting periods. Examples show calculating deferred tax liability when tax depreciation exceeds book depreciation, resulting in lower current taxes. Deferred tax amounts are presented separately from other assets/liabilities and not classified as current. Tax rate changes use enacted rates when the deferred amount reverses.
This document outlines accounting principles for income taxes, including:
1) It defines key terms like current tax, deferred tax liabilities, deductible temporary differences, and prescribes how to account for income tax consequences of transactions and events.
2) A deferred tax liability should be recognized for all taxable temporary differences, unless arising from initial asset recognition not affecting profit. A deferred tax asset can be recognized for deductible temporary differences if future taxable profit is probable.
3) Deductible temporary differences result in deferred tax assets when economic benefits in the form of tax deductions will flow to the entity in future periods against taxable profits. Deferred tax assets are only recognized when future taxable profits are probable
With VAT implementation taking effect in under six months, the Ministry of Finance have now provided further clarification of the rules which will be imposed in respect of VAT within the UAE, furthermore we have seen updates across Saudi Arabia recently, with announcements being made in respect of the registration process. This short alert from Grant Thornton UAE summarises the recent clarifications which the UAE have announced, alongside the registration elements required within Saudi Arabia.
Contradictory decisions on cost sharing agreementsRamon Tomazela
The Brazilian tax authority (COSIT) has issued contradictory rulings on the taxation of cost-sharing agreements. Previously, COSIT had ruled that expenses allocated under cost-sharing agreements between companies in the same corporate group could be deducted for tax purposes. More recently, COSIT ruled in Tax Ruling No. 43/2015 that amounts remitted to non-residents under internal cost-sharing agreements are subject to withholding tax and other taxes, contradicting its earlier positions. This new ruling goes against the collaborative nature of cost-sharing agreements and creates uncertainty, as tax authorities will now have to apply contradictory reasoning depending on the specific tax.
VIETNAM TAX ISSUES – OUTLOOK ON THE EUROPEAN UNION VIETNAM FREE TRADE AGREEME...Dr. Oliver Massmann
The document discusses several issues related to Vietnam's tax system and opportunities under the EU-Vietnam Free Trade Agreement (EVFTA). It notes inconsistencies in how local tax departments apply tax incentives for businesses and calls for clearer guidance. It also points out complexities for enterprises in complying with the declarations and incentives across different documents. Additionally, it raises concerns about discrimination in value-added tax refunds for businesses with output VAT at 5% compared to exporters. Overall, it advocates for simplifying regulations and ensuring fair and consistent treatment of businesses under Vietnam's tax system.
The document discusses key aspects of the US tax system including:
- Congress creates tax law which the IRS enforces through assessment and collection departments.
- The IRS has authority to audit taxpayers and summon records to examine income and deductions.
- Noncompliance with tax laws results in penalties for issues like filing late, failing to pay taxes owed, or filing a fraudulent return. Statutes of limitation apply.
- Taxpayers have rights that are outlined in publications and when dealing with the IRS regarding audits, appeals and collections.
VIETNAM TAXATION – OUTLOOK ON THE EUROPEAN UNION VIETNAM FREE TRADE AGREEMENT...Dr. Oliver Massmann
The document discusses several issues with Vietnam's taxation system and opportunities presented by the EU-Vietnam Free Trade Agreement (EVFTA). It identifies inconsistencies between central government policies and local tax department practices, contradictory regulations, and complexity in VAT calculation and refund rules that create difficulties for businesses. Implementation of clearer rules and guidelines is needed to resolve tax payment issues, properly apply incentives, and avoid penalties from changing interpretations. The EVFTA is expected to boost investment and trade but also influence Vietnam to adopt more fixed and determined tax rules for greater certainty.
As 22 final,AS 22 has become applicable to all listed companies with effect from 01/04/2001. The AS will also be applicable to all non-listed corporates with effect from 01/04/2002 and all other non-corporate entities with effect from 01/04/2003. Hence, now in financial statements two taxes will be accounted for (a) current income tax and (b) deferred income tax. AS 22 is a measurement standard meaning thereby that it involves accounting along with disclosure requirement in financial statements.
What are the new VAT administrative penaltiesAhmedTalaat127
The Federal Tax Authority (FTA) shared a public clarification on 28th April 2021 about the amendments for provisions under the Cabinet Decision No 40 of 2017 for administrative penalties. VAT penalties include administrative penalties, which mean the monetary fines imposed on a person or an entity by the FTA for breaching the provisions in the Tax Law of UAE. Penalties can easily be avoided by taking the necessary precautions for non-compliance while filing the VAT report. Businesses have more time to review their data and submit an accurate VAT filing and can benefit from up to 70% waiver for their unpaid penalties if they meet the criteria.
The document summarizes potential accounting implications of the recent US tax reforms for companies with US operations preparing financial statements under IFRS. Key impacts include reducing the US corporate tax rate from 35% to 21% effective January 1, 2018, allowing 100% expensing of capital expenditures made between September 27, 2017 and December 31, 2022, and changes to how net operating losses can be carried forward. Companies will need to analyze the tax reform's effects in detail to determine the financial reporting impacts.
What are the new VAT administrative penaltiesAhmedTalaat127
The Federal Tax Authority (FTA) shared a public clarification on 28th April 2021 about the amendments for provisions under the Cabinet Decision No 40 of 2017 for administrative penalties. VAT penalties include administrative penalties, which mean the monetary fines imposed on a person or an entity by the FTA for breaching the provisions in the Tax Law of UAE. Penalties can easily be avoided by taking the necessary precautions for non-compliance while filing the VAT report. Businesses have more time to review their data and submit an accurate VAT filing and can benefit from up to 70% waiver for their unpaid penalties if they meet the criteria.
The new tax law that is informally referred to as the Tax Cuts and Jobs Act (TCJA) included many perks for businesses, but it also established new protocols for the recognition of gross income that may be detrimental. These new provisions may accelerate when income taxes are payable for certain businesses, as the recognition of gross income may be required earlier than would have been previously required for tax purposes.
The document provides an overview of accounting for income taxes under IAS 12. It discusses key concepts such as:
1. Current tax is calculated by applying tax laws and rates to the current period's transactions. Current tax is recognized as a tax expense or benefit in profit or loss, except in some specific cases.
2. Deferred tax arises from temporary differences between an asset/liability's tax base and carrying amount. It is calculated in four steps: determining tax bases, identifying temporary differences, measuring deferred tax using applicable rates, and recognizing deferred tax assets/liabilities.
3. Recognition of deferred tax assets from deductible temporary differences is subject to the probability criterion - it must be probable that future taxable
This chapter provides information necessary to allow taxable persons to meet their compliance obligations in respect of tax return filing, payments of tax and obtaining VAT refunds.
The intention of the FTA is to automate these processes using information technology as much as possible. It should be noted that the VAT-specific compliance matters addressed in this chapter are closely linked to, and work in conjunction with, the more general powers of the FTA to administer, collect and enforce tax as laid out in Federal Law No 7 of 2017 on Tax Procedures.
14 August 2009 Short Fin48 Ppt Presentationdnerasmus
1. The document discusses comments on questions 7 and 16 from an exposure draft dealing with income tax published by the IASB.
2. For question 7 on uncertain tax positions, the document suggests that the exposure draft's proposals for measurement could be overly onerous for companies due to the level of analysis and disclosure required.
3. For question 16 on classification of interest and penalties, the document agrees that classification should be a policy choice but notes history shows understatement could occur without clear guidance. Clarification of measurement references is suggested.
5 Tips for Creating Standard Financial ReportsEasyReports
Well-crafted financial reports serve as vital tools for decision-making and transparency within an organization. By following the undermentioned tips, you can create standardized financial reports that effectively communicate your company's financial health and performance to stakeholders.
South Dakota State University degree offer diploma Transcriptynfqplhm
办理美国SDSU毕业证书制作南达科他州立大学假文凭定制Q微168899991做SDSU留信网教留服认证海牙认证改SDSU成绩单GPA做SDSU假学位证假文凭高仿毕业证GRE代考如何申请南达科他州立大学South Dakota State University degree offer diploma Transcript
University of North Carolina at Charlotte degree offer diploma Transcripttscdzuip
办理美国UNCC毕业证书制作北卡大学夏洛特分校假文凭定制Q微168899991做UNCC留信网教留服认证海牙认证改UNCC成绩单GPA做UNCC假学位证假文凭高仿毕业证GRE代考如何申请北卡罗莱纳大学夏洛特分校University of North Carolina at Charlotte degree offer diploma Transcript
How Does CRISIL Evaluate Lenders in India for Credit RatingsShaheen Kumar
CRISIL evaluates lenders in India by analyzing financial performance, loan portfolio quality, risk management practices, capital adequacy, market position, and adherence to regulatory requirements. This comprehensive assessment ensures a thorough evaluation of creditworthiness and financial strength. Each criterion is meticulously examined to provide credible and reliable ratings.
A toxic combination of 15 years of low growth, and four decades of high inequality, has left Britain poorer and falling behind its peers. Productivity growth is weak and public investment is low, while wages today are no higher than they were before the financial crisis. Britain needs a new economic strategy to lift itself out of stagnation.
Scotland is in many ways a microcosm of this challenge. It has become a hub for creative industries, is home to several world-class universities and a thriving community of businesses – strengths that need to be harness and leveraged. But it also has high levels of deprivation, with homelessness reaching a record high and nearly half a million people living in very deep poverty last year. Scotland won’t be truly thriving unless it finds ways to ensure that all its inhabitants benefit from growth and investment. This is the central challenge facing policy makers both in Holyrood and Westminster.
What should a new national economic strategy for Scotland include? What would the pursuit of stronger economic growth mean for local, national and UK-wide policy makers? How will economic change affect the jobs we do, the places we live and the businesses we work for? And what are the prospects for cities like Glasgow, and nations like Scotland, in rising to these challenges?
2. Elemental Economics - Mineral demand.pdfNeal Brewster
After this second you should be able to: Explain the main determinants of demand for any mineral product, and their relative importance; recognise and explain how demand for any product is likely to change with economic activity; recognise and explain the roles of technology and relative prices in influencing demand; be able to explain the differences between the rates of growth of demand for different products.
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OJP data from firms like Vicinity Jobs have emerged as a complement to traditional sources of labour demand data, such as the Job Vacancy and Wages Survey (JVWS). Ibrahim Abuallail, PhD Candidate, University of Ottawa, presented research relating to bias in OJPs and a proposed approach to effectively adjust OJP data to complement existing official data (such as from the JVWS) and improve the measurement of labour demand.
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2. Background
What you need toknow
The IFRS IC observed that entities apply diverse reporting methods when the application of tax law is
uncertain.
The IFRS IC developed IFRIC 23 to clarify how to apply the recognition and measurement requirements in
IAS 12 when there is uncertainty over income taxtreatments.
The Interpretation provides guidance on considering uncertain tax treatments separately or together,
examination by taxation authorities, the appropriate method to reflect uncertainty and accounting for changes
infacts and circumstances.
The Interpretation does not apply to items outside the scope of IAS 12 such as other taxes, levies and interest
and penalties associated with uncertain taxtreatments.
The Interpretation does not add any new disclosures, rather it refers to disclosures inIAS 1 and IAS 12.
The Interpretation is effective for annual reporting periods beginning on or after 1 January 2019. Earlier
adoption is permitted. The Interpretation provides two transition methods.
3. Introduction
In July 2014, the IFRS Interpretations Committee (the IFRS IC) issued an agenda decision in response to a submission
related to a particular situation in which an entity was required to make a payment to a taxation authority in respect of a
disputed tax treatment that had not yet been resolved. The IFRS IC noted that IAS 12 Income Taxes, and not IAS 37
Provisions, Contingent Liabilities and Contingent Assets, provides relevant guidance on the recognition of a current tax
asset in such a situation and that paragraph 12 of IAS 12 states that if the amount already paid exceeds the amount of tax
due for current and prior periods, the excess shall be recognised as an asset. The IFRS IC concluded that IAS 37 and, in
particular, the requirement to recognise such an asset only when it is virtually certain that the entity would receive a refund
from thetaxationauthorities, does not applyto therecognition and measurement of income taxesin thescope of IAS 12.
Nevertheless, the IFRS IC observed that IAS 12 does not specify how uncertainty in tax treatments is reflected in the
measurement of current and deferred tax assets and liabilities. As a result, this has led to diversity in practice.
Accordingly, the IFRS IC developed IFRIC 23 Uncertainty over Income Tax Treatments (IFRIC 23 or the
Interpretation) to address how to reflect uncertaintyin therecognition and measurementof income taxes.
It may be unclear how tax law applies to a particular transaction or circumstance. The acceptability of a
particular tax treatment under tax law may not be known until the relevant taxation authority or a court
takes a decision in the future. Consequently, a dispute or examination of a particular tax treatment by
the taxation authority may affect an entity’s accountingfor a current or deferred tax asset or liability.
4. Introduction
Definition of Terms
‘Tax treatments’ refers to the treatments used by an entity or that it plans to use in its income tax filings.
‘Taxation authority’ refers to the body or bodies that decide whether tax treatments are acceptable under tax law. This
might include a court.
An ‘uncertain tax treatment’ is a tax treatment for which there is uncertainty over whether the relevant taxation
authority will accept the tax treatment under tax law. For example, an entity’s decision not to submit any income tax
filing in a tax jurisdiction, or not to include particular income in taxable profit, is an uncertain tax treatment if its
acceptability is uncertain under tax law.
Effective Period
IFRIC 23 is effective for annual periods beginning on or after 1 January 2019, with early application permitted. The
Interpretation should be applied either retrospectively, by applying IAS 8 Accounting Policies, Changes in Accounting
Estimates and Errors if it is possible to do so without the use of hindsight, or by using a modified retrospective
approach with an initial catch-up adjustment recorded in the opening equity of the period of initial application. See
section 5 below on transition.
IFRIC 23 is applicable to taxes within the scope of IAS 12. The Interpretation applies to both current and deferred
taxes.
5. Introduction
This Interpretation clarifies how to apply the recognition and measurement requirements in IAS 12 when there is
uncertainty over income tax treatments. In such a circumstance,an entity shall recognise and measure its current
or deferred tax asset or liability applying the requirements in IAS 12 based on taxable profit (tax loss), tax bases,
unused tax losses, unused tax credits and tax rates determined applying this Interpretation.
In assessing whether uncertainty over income tax treatments exists, an entity
may consider a number of Indicators including, but not limited to, the following
Ambiguity in the drafting of relevant tax laws and related guidelines (such as
ordinances,circulars and letters) and their interpretations
Income tax practices that are generally applied by the taxation authorities in
specific jurisdictions and situations
Results of past examinations by taxation authorities on related issues
Rulings and decisions from courts or other relevant authorities in
addressing matters with a similarfact pattern
Tax memoranda prepared by qualifiedin-house or external tax advisors
The quality of available documentation to support a particular income tax
treatment
In defining ‘uncertainty’, the entity
only needs to consider whether a
particular tax treatment is
probable, rather than highly likely
or certain, to be accepted by the
taxation authorities. As explained
below, if the entity determines it is
probable that a tax treatment will
be accepted, then it will measure its
income taxes on that basis. Only
if the entity believes the likelihood
of acceptance is not probable,
would there be an uncertain tax
treatment to be addressed by
IFRIC 23.
6. Examples
Current tax impact
Entity A, a profitable entity, pays management fees to
an affiliated entity, Entity B, and claims the cost as a
deduction for tax purposes. The management fees
amount to 5 of the gross revenues realised by Entity A.
Such management fees are allowable under the tax law
as a deduction if it can be demonstrated that the price
charged is commensurate with the services provided by
Entity B.
Therefore, there is a risk that the taxation authorities
may disallow a part of the management fee. On
application of IFRIC 23, Entity A should reflect the
impact of such uncertainties in the measurement of its
current tax assets and liabilities as at the reporting date.
Current and deferred tax impact
Entity C, operating a chemical plant, records a
provision for restoration costs in its financial
statements which is also claimed as a deduction on
its corporate income tax return. However, the
amount of the restoration costs that would
eventually be incurred is uncertain as the scope of
remediation work is unclear. The local tax law
allows the taxation authorities to deny a tax
deduction for any restoration costs provision that
they consider unreasonable. On application of
IFRIC 23, Entity C should reflect the impact of
such uncertainties in the measurement of current
and deferred tax assets and liabilities as at the
reporting date.
7. Examples
Interest & Penalties
Tax legislation in Country A provides that an underpayment of income tax leads to late interest charges per year of
the underpaid tax. The late interest charge is applied regardless of whether the underpayment is due to an error
notified by the tax payer or the result of an adjustment made by the taxation authorities on inspection. Interest so
charged is not deductible for income tax purposes. The entity has applied judgement and concluded that the interest
amount payable falls within the scope of IAS 12. In addition, tax legislation imposes penalties of up to 100 of the
transfer price charged between affiliated entities where the entity fails to provide sufficient transfer pricing
documentation. This penalty is added to the taxable income recorded by the selling entity. The entity has applied
judgement and concluded that the penalty amount payable does not fall within the scope of IAS 12. Accordingly,
when there is uncertainty as to whether interest and penalties will be charged by the taxation authority, the entity
would apply IFRIC 23 to the interest charges in Country A, but not to the transfer pricing penalty.
Other taxes andlevies
Since IFRIC 23 is an interpretation of IAS 12, the IFRS IC decided not to expand the scope of the Interpretation to
other taxes and levies outside the scope of IAS 12 even though those other taxes and levies may have uncertainty
over their treatmentsthatis similarto the uncertaintiesover income taxes. Examples are VAT, stamp duties e.t.c.
8. Recognition and measurement
Recognition
How likely is it that the tax treatment will be
accepted
Probable
Measurement in line with income tax filings
(i.e.,no uncertain tax treatments)
How likely is it that the tax treatment will be
accepted
Not Probable
Measure tax amounts using the method that
provides betterprediction of resolution
Most likely amount
Or
Expected value
Measurement
9. Recognition and measurement
If an entity concludes that uncertainty over
income tax treatments exists, it applies the
guidance in IFRIC 23 which statesthat:
An entity shall determine whether
to consider each uncertain tax
treatment separately or together
with one or more other uncertain
tax treatments based on which
approach better predicts the
resolution of the uncertainty.
In determining the approach that
better predicts the resolution of
the uncertainty, an entity might
consider, for example,
How it prepares its income tax
filings and supports tax
treatments; or
How the entity expects the taxation
authority to make its examination
and resolve issues that might arise
from that examination.
Considering uncertain tax treatments separately
One of the key aspects in the application of IFRIC 23 is to determine the unit
of account. In practice, this might be an entire tax computation in a particular
jurisdiction, each uncertain tax treatment separately, or a group of two or
more uncertain tax treatments (e.g., all uncertain treatments in a particular
tax jurisdiction, or all positions of a similar nature or relating to the same
interpretation of tax legislation). IFRIC 23 requires an entity to make this
determination based on a judgement of which approach better predicts the
resolutionof theuncertainty.
Examination of tax treatments by taxation authorities
The Interpretationrequires an entity to assume that the taxation authority can,
and will,examine amounts it has a right to examine and have full knowledge of
all related information when making those examinations. As such, IFRIC 23
requires an entity to assume a 100% detection risk. IAS 12 require an entity
to measure tax assets and liabilities based on tax laws that have been enacted
or substantivelyenacted by theend of thereportingperiod.
10. Recognition and measurement
Entity A is part of a multinational group and provides intra-group loans to affiliates. It is funded through equity and
deposits made by its parent. Whilst the entity can show that its interest margin earned on many loans is at an
appropriate market rate, there are loans where the rate is open to challenge by the taxation authorities. However, Entity A
determines that, across the loan portfolio as a whole, the existence of rates above and below a market comparator
results in an overall interest margin that is within a reasonable range accepted by thetaxationauthorities.
Depending on the applicable tax law and practice in a specific jurisdiction, a taxation authority may accept a tax filing
position on the basis of the overall interest margin if it is within a reasonable range. However, there might be other
taxation authorities that would examine the interest rate separately for each loan receivable. In considering whether
uncertain tax treatments should be considered separately for each loan receivable or combined with other loan
receivables, Entity A should adopt the approach that better reflects the way the taxation authority would examine and
resolve theissue
11. Disclosures
IFRIC 23 has not introduced any new disclosures. Instead, the application guidance to the Interpretation refers to the
existing disclosure requirements in IAS 1 Presentationof Financial Statementsand IAS 12, as explained below:
When thereis uncertaintyover income taxtreatments, an entityshall determine whether todisclose:
judgements made in determining taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates as
stated in IAS 1 Presentationof Financial Statements; and
information about the assumptions and estimates made in determining taxable profit (tax loss), tax bases, unused tax
losses, unused taxcreditsand tax ratesapplying paragraphs 125–129 of IAS 1.
If an entity concludes it is probable that a taxation authority will accept an uncertain tax treatment, the entity shall
determine whether to disclose the potential effect of the uncertainty as a tax-related contingency applying paragraph 88 of
IAS 12.