Current tax brought forward

At each reporting date you would generally expect to see a current liability in respect of the current year’s tax liability (provision). The amount of this will depend on the tax computation. The amount of tax paid to the tax authority may be more – e.g. because the tax authority disallows some expenditure that has been claimed – or it could be less. For FR you do not have to know why there is a difference – only that if the liability is under-provided – that will leave a debit balance on the current tax payable account. This short-fall will become part of the next year’s expense.