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DEFERRED TAXES!

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › DEFERRED TAXES!

  • This topic has 1 reply, 2 voices, and was last updated 5 years ago by P2-D2.
Viewing 2 posts - 1 through 2 (of 2 total)
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  • October 11, 2019 at 3:03 pm #548805
    izheleva
    Member
    • Topics: 1
    • Replies: 0
    • ☆

    DT has always been an elusive concept! I would greatly appreciate if someone could answer the following question.

    If an asset’s book depreciation is non-deductible for tax purposes, and there are no wear&tear allowances, would that be a permanent or a timing difference? I.e. would that give rise to a DTA?

    Many thanks!

    October 12, 2019 at 2:58 pm #548914
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7177
    • ☆☆☆☆☆

    Hi,

    This would be a timing difference as presumably the asset will be allowable for tax depreciation (capital allowances). If there was no tax depreciation (rare!) then it would be a permanent difference.

    Thanks

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