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Hi,
I was wondering if you could help me understand how to identify that i have a tax refund. Normally to obtain my tax paid figure i will compare the opening figure to the closing figure. This is what i mean by opening and closing figures
opening figure=b/f figures in both current and non-current liability + tax (I/S)
Versus Closing figure= this year current and non current liability
The difference between the two is deducted from cash flow from operating activities as tax paid but when do i have a tax refund and will it go to Cash flow from investing activities?
Many thanks
No, it’s still in operating activities. When do you have a refund? When b/fwd ( both current and deferred ) + I/S charge is LESS than the two balances carried forward
Thanks Mike, but it all the questions i attempted, both carried forward figures has always being higher than b/f balances, and it wasn’t a tax refund… i’m still slightly unclear 🙁
That’s not quite what I said! If c/fwd is greater than “b/fwd + I/S charge“
Most questions b/fwd + I/S charge exceeds c/fwd and the difference is a tax payment. In only RARE examples ( only once in my memory ) does Steve Scott set up a tax repayment
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