Results 1 to 3 of 3

Thread: Deferred tax and prepaid income tax

  1. #1
    Junior Member
    Join Date
    Jun 2011
    Location
    Cape Town
    Posts
    13
    Thanks
    4
    Thanked 0 Times in 0 Posts

    Deferred tax and prepaid income tax

    Hi

    I am at a bit of a cross road concerning the treatment of prepaid tax in terms of deferred tax.

    Data:
    Prepaid tax R600 000 as at FYE 30 June 2018

    Question:
    How to account for the deferred tax in the current year’s quarterly financial statements ending 30 September 2018 taking into consideration the prepaid tax carrying value of R600 000 form the prior FY.

    Option 1
    Include the R600 000 as an asset in the deferred tax balance computation
    Click image for larger version. 

Name:	1.png 
Views:	73 
Size:	3.1 KB 
ID:	7302
    *correction DT asset should be DT liability

    Option 2
    Include the tax value (R600 000 x 28%) in the tax reconciliation note.
    Click image for larger version. 

Name:	2.png 
Views:	96 
Size:	7.8 KB 
ID:	7303

  2. #2
    Full Member
    Join Date
    Dec 2016
    Location
    Cape Town
    Posts
    30
    Thanks
    0
    Thanked 4 Times in 4 Posts
    :/ Is the R600k provisional tax or are you referring to an actual prepaid expense?

  3. #3
    Junior Member
    Join Date
    Jun 2011
    Location
    Cape Town
    Posts
    13
    Thanks
    4
    Thanked 0 Times in 0 Posts
    It is provisional tax

Similar Threads

  1. [Question] Deferred Tax
    By NTH in forum Accounting Forum
    Replies: 1
    Last Post: 30-Jun-17, 04:14 PM
  2. Replies: 1
    Last Post: 28-Jun-16, 08:39 PM
  3. [Question] Deferred tax on Franchise costs
    By dellatjie in forum Accounting Forum
    Replies: 3
    Last Post: 24-Sep-15, 07:19 AM
  4. Replies: 290
    Last Post: 28-Jun-13, 09:31 PM
  5. Member Loan Account and Deferred Salary
    By Swapo in forum Tax Forum
    Replies: 7
    Last Post: 05-Nov-10, 03:17 PM

Did you like this article? Share it with your favourite social network.

Did you like this article? Share it with your favourite social network.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •