DEFERRED TAXES!

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October 11, 2019 at 3:03 pm #548805
izheleva
Member
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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!
October 12, 2019 at 2:58 pm #548914
P2-D2
Keymaster
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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
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