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Chapter 4 Tax adjusted trading profit – Practice Question 10

This topic has 1 reply, 2 voices, and was last updated 9 years ago by Tax Tutor.

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October 26, 2015 at 12:44 pm #279023
alinaflorea
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Dear ACCA Tutor,
why is in the practice question mentioned above the previous year trade debt recovered treated as taxable in the current year? I thought that the computation of taxable income for previous year should be corrected and resubmitted to HMRC, hence adjustment were to be done in previous year record and deducted from this year. Am I maybe wrong?
Thank you in advance!
Alina
October 27, 2015 at 9:55 pm #279328
Tax Tutor
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No we don’t make a prior year adjustment in tax we just tax in the current period to reverse the write off in the previous period as opposed to correcting an earlier year’s computation for say something omitted by error from that computation
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