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!
Ask the Tutor ACCA FR
DEFERRED TAXES!
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
Sign in to reply to this topic.