Good morning guys,
I just want to make sure that I am looking at the set of the facts in the correct manner:
My client purchased a few franchises. I capitalised these costs as an intangible asset, and per IFRS for SME, I am depreciating it at 5% per year.
SARS will not allow any deduction for this expense as far as I am aware.
Therefore there would be a difference between the tax basis and the accounting basis here.
Should I be calculating deferred tax on it?
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