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My question is what are the deferred tax implications in defined contribution plan and how to calculate them?
What are the situations in which the deferred tax will occur in defined contribution plan?That’s a new one on me! And one about which I’m not certain 🙁
I imagine that when actuaries give a valuation on the pension fund assets for the purposes of arriving at the carry forward amount of the fair value of those assets, some of them will be taxable but the tax will not be payable until that asset is actually realised at a profit.
I don’t think that I remember seeing this as an issue in past exams!
Sorry not to be more definitive
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