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?