Cash flow - tax paid calculation when a tax refund is due

Hi John, I hope you are well. Could you help with my thinking with this one… In MTQ 9 in Kaplan you have to calculate tax paid for the cash flow. The question states that there is a tax refund due as a result of making a loss. The details are: Income tax liability b/f in sofp is 5000 Income tax recoverable in P&L is 500 Income tax recoverable (asset) in sofp is 500 Tax paid is 5000 I can see what they have done in the answer but can’t quite explain it in words if I was asked to describe what’s happening to someone else. Could you help? Thanks